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Labour Market Effects of the Polytechnic Education Reform: The Finnish Experience

Author

Listed:
  • Böckerman, Petri

    () (Labour Institute for Economic Research)

  • Hämäläinen, Ulla

    (Ministry of Finance, Finland)

  • Uusitalo, Roope

    () (University of Jyväskylä)

Abstract

This paper evaluates the labour market effects of the introduction of the polytechnic education system in Finland. The polytechnic reform gradually transformed former vocational colleges into polytechnics. Since the timing of the reform differed across schools, we can compare the performance of polytechnic graduates to the performance of vocational college graduates controlling for both the year and the school effects. The results are somewhat sensitive to how the selectivity issues are treated but generally suggest that both the earnings and the employment levels of post-reform graduates are higher in the field of business and administration. The effects are much smaller and usually insignificant in other fields.

Suggested Citation

  • Böckerman, Petri & Hämäläinen, Ulla & Uusitalo, Roope, 2009. "Labour Market Effects of the Polytechnic Education Reform: The Finnish Experience," IZA Discussion Papers 4013, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp4013
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    References listed on IDEAS

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    1. Maurin, Eric & McNally, Sandra, 2007. "Educational Effects of Widening Access to the Academic Track: A Natural Experiment," IZA Discussion Papers 2596, Institute for the Study of Labor (IZA).
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    3. Harmon, Colm & Walker, Ian, 1995. "Estimates of the Economic Return to Schooling for the United Kingdom," American Economic Review, American Economic Association, vol. 85(5), pages 1278-1286, December.
    4. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    5. Costas Meghir & Mårten Palme, 2005. "Educational Reform, Ability, and Family Background," American Economic Review, American Economic Association, vol. 95(1), pages 414-424, March.
    6. Uusitalo, Roope, 1999. "Return to education in Finland," Labour Economics, Elsevier, vol. 6(4), pages 569-580, November.
    7. Margo, Robert A. & Aldrich Finegan, T., 1996. "Compulsory schooling legislation and school attendance in turn-of-the century America: A 'natural experiment' approach," Economics Letters, Elsevier, vol. 53(1), pages 103-110, October.
    8. Kane, Thomas J & Rouse, Cecilia Elena, 1995. "Labor-Market Returns to Two- and Four-Year College," American Economic Review, American Economic Association, vol. 85(3), pages 600-614, June.
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    Cited by:

    1. Gomez, Juan & Vassallo, José Manuel, 2015. "Evolution over time of heavy vehicle volume in toll roads: A dynamic panel data to identify key explanatory variables in Spain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 74(C), pages 282-297.
    2. Boccanfuso, Dorothée & Larouche, Alexandre & Trandafir, Mircea, 2015. "Quality of Higher Education and the Labor Market in Developing Countries: Evidence from an Education Reform in Senegal," World Development, Elsevier, vol. 74(C), pages 412-424.
    3. Polidano, Cain & Tabasso, Domenico, 2016. "Fully integrating upper-secondary vocational and academic courses: A flexible new way?," Economics of Education Review, Elsevier, vol. 55(C), pages 117-131.
    4. Böckerman, Petri & Haapanen, Mika, 2010. "The effect of education on migration: Evidence from school reform," MPRA Paper 27629, University Library of Munich, Germany.
    5. Petri Böckerman & Mika Haapanen, 2013. "The effect of polytechnic reform on migration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(2), pages 593-617, April.
    6. Virolainen, Maarit & Stenström, Marja-Leena, 2014. "Finnish vocational education and training in comparison: Strengths and weaknesses," International Journal for Research in Vocational Education and Training (IJRVET), European Research Network in Vocational Education and Training (VETNET), European Educational Research Association, vol. 1(2), pages 81-106.
    7. Juan Gomez & José Manuel Vassallo & Israel Herraiz, 2016. "Explaining light vehicle demand evolution in interurban toll roads: a dynamic panel data analysis in Spain," Transportation, Springer, vol. 43(4), pages 677-703, July.
    8. Haapanen, Mika & Böckerman, Petri, 2013. "Does Higher Education Enhance Migration?," IZA Discussion Papers 7754, Institute for the Study of Labor (IZA).
    9. Böckerman, Petri & Haapanen, Mika & Jepsen, Christopher, 2015. "Back to School? Labor-Market Returns to Vocational Postsecondary Education," IZA Discussion Papers 9079, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    school reform; polytechnic education; vocational education; return to education;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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