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

  • Böckerman, Petri

    ()

    (Labour Institute for Economic Research)

  • Hämäläinen, Ulla

    ()

    (Social Insurance Institution of Finland)

  • Uusitalo, Roope

    ()

    (HECER)

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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4013.

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Length: 42 pages
Date of creation: Feb 2009
Date of revision:
Publication status: published in: Economics of Education Review, 2009, 28 (6), 672-681
Handle: RePEc:iza:izadps:dp4013
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  1. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
  2. Costas Meghir & Mårten Palme, 2004. "Educational reform, ability and family background," IFS Working Papers W04/10, Institute for Fiscal Studies.
  3. Uusitalo, Roope, 1999. "Return to education in Finland," Labour Economics, Elsevier, vol. 6(4), pages 569-580, November.
  4. Costas Meghir & Mårten Palme, 1999. "Assessing the effect of schooling on earnings using a social experiment," IFS Working Papers W99/10, Institute for Fiscal Studies.
  5. 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.
  6. Eric Maurin & Sandra McNally, 2007. "Educational Effects of Widening Access to the Academic Track: A Natural Experiment," CEE Discussion Papers 0085, Centre for the Economics of Education, LSE.
  7. 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 1278-86, December.
  8. Andrew M. Gill & Duane E. Leigh, 2000. "Community college enrollment, college major, and the gender wage gap," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(1), pages 163-181, October.
  9. Robert A. Margo & T. Aldrich Finegan, 1996. "Compulsory Schooling Legislation and School Attendance in Turn-of-the-Century America: A "Natural Experiment" Approach," NBER Historical Working Papers 0089, National Bureau of Economic Research, Inc.
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