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The Employment–Education Trade-off in School-Based Vocational Education: Evidence from Peers’ Choices

Author

Listed:
  • Pedro S. Martins

    (Nova School of Business and Economics, Portugal & IZA@LISER.)

  • Pedro Luis Silva

    (Departament d'Economia Aplicada, Universitat Autònoma de Barcelona, Spain & CIPES & IZA@LISER)

  • Madalena Temudo

    (Nova School of Business and Economics, Portugal)

  • Ana Pinho

    (Centre for Research in Higher Education Policies (CIPES), Portugal)

Abstract

Vocational education and training (VET) may accelerate employment transitions at the cost of reducing further education participation. We quantify this trade-off in a school-based VET system, drawing on linked administrative and survey data in Portugal. We use the share of lower-secondary classmates who subsequently choose upper-secondary VET as an instrument for individual VET enrollment. We find a pronounced trade-off in early post-school transitions: vocational enrollment increases employment by 26-34 percentage points and improves several job quality indicators; however, VET reduces further education participation by 30-40 percentage points and is associated with higher unemployment.

Suggested Citation

  • Pedro S. Martins & Pedro Luis Silva & Madalena Temudo & Ana Pinho, 2026. "The Employment–Education Trade-off in School-Based Vocational Education: Evidence from Peers’ Choices," Working Papers wpdea2608, Department of Applied Economics at Universitat Autonoma of Barcelona.
    • Handle: RePEc:uab:wprdea:wpdea2608
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