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A Comparison of Earnings Related to Higher Level Vocational/Technical and Academic Education

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  • Hector Espinoza
  • Stefan Speckesser

Abstract

We use the earliest cohort of English secondary school leavers with newly available Longitudinal Education Outcomes data (622,000 pupils in 2002/03) to compare earnings of people with higher vocational/technical qualifications to those of degree holders. The unusually rich data allow us to estimate earnings differentials until the age of 30, controlling for a wide array of characteristics and full education trajectories. Our results show that initially higher earnings observed for people achieving higher vocational education disappear when people are in the mid-twenties. Depending on the type of university attended, male degree holders earn up to 18% more by age 30, while female graduates earn around 40% more. However, there is considerable heterogeneity by gender and subject area. There are high returns related to higher vocational/technical education in STEM subjects, which remain significantly above those of many degree holders by age 30.

Suggested Citation

  • Hector Espinoza & Stefan Speckesser, 2019. "A Comparison of Earnings Related to Higher Level Vocational/Technical and Academic Education," National Institute of Economic and Social Research (NIESR) Discussion Papers 502, National Institute of Economic and Social Research.
    • Handle: RePEc:nsr:niesrd:502
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    References listed on IDEAS

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    3. Irene Kriesi & Juerg Schweri, 2019. "Types of Education, Achievement and Labour Market Integration over the Life Course," Social Inclusion, Cogitatio Press, vol. 7(3), pages 58-64.
    4. Chiara Cavaglia & Stephen Machin & Sandra McNally & Jenifer Ruiz-Valenzuela, 2020. "Gender, achievement, and subject choice in English education," CVER Research Papers 032, Centre for Vocational Education Research.

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    More about this item

    Keywords

    returns to education; Tertiary Education; High-Level Technical Education; Vocational Education; Administrative Data;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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