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Can Vocational Education Improve the Wages of Minorities and Disadvantaged Groups? The Case of Israel

  • Neuman, Shoshana

    ()

    (Bar-Ilan University)

  • Ziderman, Adrian

    ()

    (Bar-Ilan University)

There is a considerable empirical literature which compares wage levels of workers who have studied at secondary vocational schools with wages of workers who took academic schooling. In general, vocational education does not lead to higher wages. However, in some countries where labor markets are characterized by employment growth, skill shortages and a good match between vocational skills and available jobs, the record of vocational schooling has been more positive. Israel constitutes a case in point. However, little attention has been given to examining the success of vocational education in raising the wages of various sub-sections of the labor force, in particular of minorities and disadvantaged groups. In this paper, we examine the efficacy of vocational education in raising the wage levels of four such groups: recent immigrants, Jews of Eastern origin, Israeli Arabs and females. The results are mixed, differing from group to group, thus justifying our approach of examining the impact of vocational schooling on finer breakdowns of the population of secondary school completers.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 348.

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Length: 43 pages
Date of creation: Aug 2001
Date of revision:
Publication status: published in: Economics of Education Review, 2003, 22(4), 421-432
Handle: RePEc:iza:izadps:dp348
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  1. Neuman, Shoshana & Ziderman, Adrian, 1991. "Vocational schooling, occupational matching, and labor market earnings in Israel," Policy Research Working Paper Series 683, The World Bank.
  2. Brenner, Reuven & Kiefer, Nicholas M, 1981. "The Economics of the Diaspora: Discrimination and Occupational Structure," Economic Development and Cultural Change, University of Chicago Press, vol. 29(3), pages 517-34, April.
  3. Neuman, Shoshana, 1999. "Aliyah to Israel: Immigration under Conditions of Adversity," IZA Discussion Papers 89, Institute for the Study of Labor (IZA).
  4. Min, Wei-Fang & Tsang, Mun Chiu, 1990. "Vocational education and productivity: A case study of the Beijing General Auto Industry Company," Economics of Education Review, Elsevier, vol. 9(4), pages 351-364, December.
  5. Julian R. Betts & Magnus Lofstrom, 1998. "The Educational Attainment of Immigrants: Trends and Implications," NBER Working Papers 6757, National Bureau of Economic Research, Inc.
  6. Bishop, John, 1989. "Occupational training in high school: When does it pay off?," Economics of Education Review, Elsevier, vol. 8(1), pages 1-15, February.
  7. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492 National Bureau of Economic Research, Inc.
  8. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  9. Shoshana Neuman & Adrian Ziderman, 1991. "Vocational Schooling, Occupational Matching, and Labor Market Earnings in Israel," Journal of Human Resources, University of Wisconsin Press, vol. 26(2), pages 256-281.
  10. Chung, Yue-Ping, 1990. "Educated mis-employment in Hong Kong: Earnings effects of employment in unmatched fields of work," Economics of Education Review, Elsevier, vol. 9(4), pages 343-350, December.
  11. Shoshana Neuman & Adrian Ziderman, 1999. "Vocational Education in Israel: Wage Effects of the VocEd-Occupation Match," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 407-420.
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