IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp9137.html
   My bibliography  Save this paper

The Early Labour Market Effects of Generally and Vocationally Oriented Higher Education: Is There a Trade-off?

Author

Listed:
  • Verhaest, Dieter

    () (KU Leuven)

  • Baert, Stijn

    () (Ghent University)

Abstract

This study investigates whether the choice for a vocationally versus a generally oriented higher education program entails a trade-off between higher employment chances and better matches at the start of the career (when opting for a vocational orientation) and a lower risk of bad match persistence later on (when opting for a general orientation). We rely on detailed early career spell data of Flemish graduates and assess the vocational orientation of their program by means of the presence of curriculum-based work placement. We model the program choice (vocationally versus generally oriented), the transition to a good match and the preceding transition to a bad match simultaneously. To account for non-random selection into vocational programs and into bad matches, the Timing of Events method is combined with an exclusion restriction. After accounting for unobserved heterogeneity, we do not find any evidence for a trade-off early in the career. This result contributes to the debate about the efficiency of vocationalising tertiary education programs through the implementation of work placement.

Suggested Citation

  • Verhaest, Dieter & Baert, Stijn, 2015. "The Early Labour Market Effects of Generally and Vocationally Oriented Higher Education: Is There a Trade-off?," IZA Discussion Papers 9137, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp9137
    as

    Download full text from publisher

    File URL: http://ftp.iza.org/dp9137.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Hartog, Joop, 2000. "Over-education and earnings: where are we, where should we go?," Economics of Education Review, Elsevier, vol. 19(2), pages 131-147, April.
    2. Sicherman, Nachum & Galor, Oded, 1990. "A Theory of Career Mobility," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 169-192, February.
    3. Eric A. Hanushek & Guido Schwerdt & Ludger Woessmann & Lei Zhang, 2017. "General Education, Vocational Education, and Labor-Market Outcomes over the Lifecycle," Journal of Human Resources, University of Wisconsin Press, vol. 52(1), pages 48-87.
    4. Ivar Kolstad & Arne Wiig, 2015. "Education and entrepreneurial success," Small Business Economics, Springer, vol. 44(4), pages 783-796, April.
    5. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    6. Giorgio Brunello & Daniele Checchi, 2007. "Does school tracking affect equality of opportunity? New international evidence," Economic Policy, CEPR;CES;MSH, vol. 22, pages 781-861, October.
    7. Ariga, Kenn & Brunello, Giorgio, 2007. "Does Secondary School Tracking Affect Performance? Evidence from IALS," IZA Discussion Papers 2643, Institute for the Study of Labor (IZA).
    8. Lockwood Reynolds, C., 2012. "Where to attend? Estimating the effects of beginning college at a two-year institution," Economics of Education Review, Elsevier, vol. 31(4), pages 345-362.
    9. Dirk Krueger & Krishna B. Kumar, 2004. "Skill-Specific rather than General Education: A Reason for US--Europe Growth Differences?," Journal of Economic Growth, Springer, vol. 9(2), pages 167-207, June.
    10. Anders Stenberg & Olle Westerlund, 2015. "The long-term earnings consequences of general vs. specific training of the unemployed," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-26, December.
    11. Martin HUMBURG & Andries de GRIP & Rolf van der VELDEN, 2017. "Which skills protect graduates against a slack labour market?," International Labour Review, International Labour Organization, vol. 156(1), pages 25-43, March.
    12. Verhaest Dieter & Velden Rolf van der, 2010. "Cross-country differences in graduate overeducation and its persistence," ROA Research Memorandum 007, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    13. Paul Ryan, 2001. "The School-to-Work Transition: A Cross-National Perspective: Corrigendum," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 767-767, September.
    14. Heijke, Hans & Meng, Christoph & Ris, Catherine, 2003. "Fitting to the job: the role of generic and vocational competencies in adjustment and performance," Labour Economics, Elsevier, vol. 10(2), pages 215-229, April.
    15. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-475, March.
    16. Baert, Stijn & Cockx, Bart & Verhaest, Dieter, 2013. "Overeducation at the start of the career: Stepping stone or trap?," Labour Economics, Elsevier, vol. 25(C), pages 123-140.
    17. Bishop, John H. & Mane, Ferran, 2004. "The impacts of career-technical education on high school labor market success," Economics of Education Review, Elsevier, vol. 23(4), pages 381-402, August.
    18. Gaure, Simen & Roed, Knut & Zhang, Tao, 2007. "Time and causality: A Monte Carlo assessment of the timing-of-events approach," Journal of Econometrics, Elsevier, vol. 141(2), pages 1159-1195, December.
    19. Rees, Albert, 1986. "An Essay on Youth Joblessness," Journal of Economic Literature, American Economic Association, vol. 24(2), pages 613-628, June.
    20. Goldin, Claudia, 2001. "The Human-Capital Century And American Leadership: Virtues Of The Past," The Journal of Economic History, Cambridge University Press, vol. 61(02), pages 263-292, June.
    21. Mane, Ferran, 1999. "Trends in the payoff to academic and occupation-specific skills: the short and medium run returns to academic and vocational high school courses for non-college-bound students," Economics of Education Review, Elsevier, vol. 18(4), pages 417-437, October.
    22. Duchesne, I. & Nonneman, W., 1998. "The Demand for Higher Education in Belgium," Economics of Education Review, Elsevier, vol. 17(2), pages 211-218, April.
    23. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, vol. 71(5), pages 1491-1517, September.
    24. Hersch, Joni, 1991. "Education Match and Job Match," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 140-144, February.
    25. Paul Ryan, 2001. "The School-to-Work Transition: A Cross-National Perspective," Journal of Economic Literature, American Economic Association, vol. 39(1), pages 34-92, March.
    26. Ofer Malamud & Cristian Pop-Eleches, 2010. "General Education versus Vocational Training: Evidence from an Economy in Transition," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 43-60, February.
    27. repec:sip:wpaper:11-003 is not listed on IDEAS
    28. D. Verhaest & T. Schatteman & W. Van Trier, 2014. "Overeducation in the early career of secondary education graduates: An analysis using sequence techniques," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 14/876, Ghent University, Faculty of Economics and Business Administration.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brunello, Giorgio & Rocco, Lorenzo, 2015. "The Labour Market Effects of Academic and Vocational Education over the Life Cycle: Evidence from Two British Cohorts," IZA Discussion Papers 9275, Institute for the Study of Labor (IZA).
    2. repec:spr:soinre:v:138:y:2018:i:1:d:10.1007_s11205-017-1643-z is not listed on IDEAS
    3. Irene Brunetti & Lorenzo Corsini, 2018. "School-to-work transition and vocational education: a comparison across Europe," Discussion Papers 2018/233, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    4. Zilic, Ivan, 2018. "General versus vocational education: Lessons from a quasi-experiment in Croatia," Economics of Education Review, Elsevier, vol. 62(C), pages 1-11.

    More about this item

    Keywords

    underemployment; vocational education; academisation; work placement; mismatch; overeducation;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp9137. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak). General contact details of provider: http://www.iza.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.