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Vocational schooling, occupational matching, and labor market earnings in Israel

Author

Listed:
  • Neuman, Shoshana
  • Ziderman, Adrian

Abstract

The authors conducted a comparative analysis of the earnings of workers in Israel who had last attended vocational schools and those who had last attended academic secondary schools before entering the labor force. Their findings suggest that Israel may provide an example of an educational system in which vocational schooling is economically effective. Vocational schooling in Israel has proven more cost-effective than general academic training. In particular, vocational school attenders who later worked in occupations related to their course of study earned more. Their wages were up to 10 percent more a month than their peers who studied at academic secondary schools and those who attended vocational schools but found employment in other occupations not related to their field of study. These results reinforce similar findings in recent research on vocational schooling in the United States. A caveat is necessary to temper the generally positive findings concerning vocational schooling in Israel. While vocational schooling is cost-effective compared with other forms of secondary schooling, it does not compare favorably with other forms of training for skilled trades, such as apprenticeships and factory-based vocational schools. Another factor is the national consensus in Israel favoring education designed to equip young people for the social and cultural role of integrating the country's heterogenous, largely immigrant population.

Suggested Citation

  • Neuman, Shoshana & Ziderman, Adrian, 1991. "Vocational schooling, occupational matching, and labor market earnings in Israel," Policy Research Working Paper Series 683, The World Bank.
  • Handle: RePEc:wbk:wbrwps:683
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    Citations

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    Cited by:

    1. Ofer Malamud & Cristian Pop-Eleches, 2008. "General Education vs. Vocational Training: Evidence from an Economy in Transition," NBER Working Papers 14155, National Bureau of Economic Research, Inc.
    2. Neuman, Shoshana & Ziderman, Adrian, 2003. "Can vocational education improve the wages of minorities and disadvantaged groups?: The case of Israel," Economics of Education Review, Elsevier, vol. 22(4), pages 421-432, August.
    3. Fatma El-Hamidi, 2006. "General or Vocational Schooling? Evidence on School Choice, Returns, and 'Sheepskin' Effects from Egypt 1998," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 9(2), pages 157-176.
    4. Pema, Elda & Mehay, Stephen, 2012. "Career effects of occupation-related vocational education: Evidence from the military's internal labor market," Economics of Education Review, Elsevier, vol. 31(5), pages 680-693.
    5. Kahyarara, Godius & Teal, Francis, 2008. "The Returns to Vocational Training and Academic Education: Evidence from Tanzania," World Development, Elsevier, vol. 36(11), pages 2223-2242, November.
    6. David Newhouse & Daniel Suryadarma, 2011. "The Value of Vocational Education: High School Type and Labor Market Outcomes in Indonesia," World Bank Economic Review, World Bank Group, vol. 25(2), pages 296-322, May.
    7. Elda Pema, 2010. "Trends in the Albanian Labour Market: Who are Albania’s Unemployed?," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 16(4), pages 860-871, February.
    8. Francis Teal & Godius Kahyarara, 2008. "The returns to vocational training and academic education: Evidence from Tanzania," Economics Series Working Papers WPS/2008-07, University of Oxford, Department of Economics.
    9. Carlos Cáceres & Carlos Chávez, 1995. "El Programa de Becas de Arancel Universitario MINEDUC: Antecedentes para una Evaluación," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 32(96), pages 165-198.
    10. Eugenio Bobenrieth & Carlos Cáceres, 1994. "Un Modelo de Selección de Liceos de Enseñanza Media," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 31(92), pages 27-44.
    11. Dario Pozzoli, 2007. "High Schools and Labour Market Outcomes: Italian Graduates," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 66(2), pages 247-294, July.
    12. Hina Nazli, 2004. "The Effect of Education, Experience and Occupation on Earnings: Evidence from Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 9(2), pages 1-30, Jul-Dec.
    13. Karina Mahirda & Heni Wahyuni, 2016. "Returning To General And Vocational High-Schools In Indonesia," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 18, pages 9-28, December.
    14. Eugenio Bobenrieth & Carlos Cáceres, 1993. "Determinantes del Salario de los Egresados de la Enseñanza Media Técnico Profesional en Chile," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 30(89), pages 111-130.
    15. Klinov, Ruth, 1996. "Changes in school enrollment patterns in Israel: A comparison between two disadvantaged groups," Economics of Education Review, Elsevier, vol. 15(3), pages 289-301, June.
    16. Dearden, Lorraine, et al, 2002. "The Returns to Academic and Vocational Qualifications in Britain," Bulletin of Economic Research, Wiley Blackwell, vol. 54(3), pages 249-274, July.
    17. Chris Sakellariou, 2005. "Profitability of Vocational vs. Formal Education for Men and Women in Singapore Using Quantile Regressions," Economic Growth Centre Working Paper Series 0502, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    18. Mona Said & Fatma El-Hamidi, 2008. "Taking Technical Education Seriously in MENA: Determinants, Labor Market Implications and Policy Lessons," Working Papers 450, Economic Research Forum, revised 09 Jan 2008.
    19. Werner Eichhorst & Núria Rodríguez-Planas & Ricarda Schmidl & Klaus F. Zimmermann, 2015. "A Road Map to Vocational Education and Training in Industrialized Countries," ILR Review, Cornell University, ILR School, vol. 68(2), pages 314-337, March.

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