Labour Market Effects of General and Vocational Education over the Life-Cycle and across Time: Accounting for Age, Period, and Cohort Effects

2019 ◽  
Vol 35 (5) ◽  
pp. 701-717
Author(s):  
Jesper J Rözer ◽  
Thijs Bol
Keyword(s):  
Life Cycle ◽  
Vocational Education ◽  
Labour Market ◽  
Labour Force ◽  
Smooth Transition ◽  
Market Returns ◽  
Job Status ◽  
Market Effects ◽  
Period Effects ◽  
Educational Degree

Abstract A recent literature argues that the labour market returns to vocational education vary over the life cycle. Graduates with an occupation-specific educational degree have a smooth transition into the labour market but experience difficulties later in their career when their specific skills become obsolete. This life course penalty to vocational education is expected to be particularly strong in periods of rapid technological change. Existing literature has mostly studied this topic from the perspective of age effects but focused less on cohort and period effects. Moreover, it is unclear to what extent lower returns to vocational education in the late career vary across time periods. Using Labour Force Survey data for the Netherlands (1996–2012) we find that having a more occupation-specific educational degree increases the likelihood of being employed in early life and lowers the average job status. This initial advantage of a higher employment probability declines with age, and the disadvantage in job status increases as workers grow older. We find that these life-cycle effects have not, or only marginally, changed over time.

scholarly journals More skilled, better paid: labour-market returns to postsecondary vocational education

2017 ◽  
Vol 70 (2) ◽  
pp. 485-508 ◽  
Author(s):  
Petri Böckerman ◽  
Mika Haapanen ◽  
Christopher Jepsen
Keyword(s):  
Vocational Education ◽  
Labour Market ◽  
Market Returns

scholarly journals Does Vocational Education Give a Labour Market Advantage over the Whole Career? A Comparison of the United Kingdom and Switzerland

2019 ◽  
Vol 7 (3) ◽  
pp. 202-223 ◽  
Author(s):  
Maïlys Korber
Keyword(s):  
United Kingdom ◽  
Vocational Education ◽  
Labour Market ◽  
Labour Force ◽  
Compulsory Education ◽  
Youth Unemployment ◽  
Vocational Education And Training ◽  
Hourly Wage ◽  
Employment Rate ◽  
The United Kingdom

Research suggests that vocational education and training (VET) tends to reduce youth unemployment by providing them with specific skills, thus smoothing the transition from education to work. However, we still know relatively little aboutwhether vocational education provides higher employment rate and wages over the entire working trajectory than holders of lower education; after several years of experience, both groups may indeed have similar skills and thus similar situations in the labour market. We compare the situation in the United Kingdom and Switzerland, two countries that share a tradition of vocational education but differ in the specificity and standardisation of their VET system. Creating a pseudo-cohort with repeated rounds of the United Kingdom and Swiss labour force surveys, we use regression models and compare the employment rate and hourly wage of our two groups of interest: individuals with vocational education at the upper secondary level and individuals with no more than compulsory education. We find that VET graduates fare better in terms of both employment and wages over the whole career. This advantage is larger for women than men and, contrary to our hypothesis, larger in the United Kingdom than in Switzerland with respect to employment prospects.

scholarly journals What to do when the robots come? Non-formal education in jobs affected by automation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sierdjan Koster ◽  
Claudia Brunori
Keyword(s):  
Labour Market ◽  
Formal Education ◽  
Labour Force ◽  
Content Type ◽  
Market Effects ◽  
Labour Market Position ◽  
Market Regimes ◽  
Multi Level ◽  
Using Data ◽  
Geographical Dimension

PurposeOngoing automation processes may render a fair share of the existing jobs redundant or change their nature. This begs the question to what extent employees affected invest in training in order to strengthen their labour market position in times of uncertainty. Given the different national labour market regimes and institutions, there may be an important geographical dimension to the opportunities to cope with the challenges set by automation. The purpose of this study is to address both issues.Design/methodology/approachUsing data from the 2016 European labour Force Survey, the authors estimate with logit and multi-level regression analyses how the automation risk of a worker's job is associated with the propensity of following non-formal education/training. The authors allow this relationship to vary across European countries.FindingsThe results show that employees in jobs vulnerable to automation invest relatively little in training. Also, there are significant differences across Europe in both the provision of training in general and the effect of automation on training provision.Originality/valueWhile there is quite a lot of research on the structural labour market effects of automation, relatively little is known about the actions that employees take to deal with the uncertainty they are faced with. This article aims to contribute to our understanding of such mechanisms underlying the structural macro-level labour-market dynamics.

scholarly journals Skills, Competitiveness and Productivity

2009 ◽  
Vol 48 (4II) ◽  
pp. 473-486 ◽  
Author(s):  
Muhammad Khan ◽  
Fozia Aftab Kiani ◽  
Afsheen Ashraf ◽  
Muhammad Iftikhar-ul- Husnain
Keyword(s):  
Vocational Education ◽  
Labour Market ◽  
Growth And Development ◽  
Labour Force ◽  
Training System ◽  
Vocational Education And Training ◽  
Labour Force Survey ◽  
Market Competitiveness ◽  
Globalising World ◽  
And Training

This study reviews selected indicators on skills and productivity for the period 2000-2008 using labour force survey data. The review of the labour market demonstrates the need of enhancement of skills as well as improved access to skills and education which are necessary to enter a virtuous circle of higher productivity, employment, incomes growth, and development. Without a workforce that is continuously acquiring new and improved skills, it will be difficult for Pakistan to be competitive in the globalising world. The analysis clearly emphasises the need for reforms in the technical and vocational education and training system. Keywords: Skills, Productivity, Labour Market, Competitiveness

scholarly journals Labor Market Returns to Vocational Secondary Education

2022 ◽  
Vol 14 (1) ◽  
pp. 197-224
Author(s):  
Mikko Silliman ◽  
Hanna Virtanen
Keyword(s):  
Labor Market ◽  
Life Cycle ◽  
Secondary Education ◽  
Vocational Education ◽  
Regression Discontinuity ◽  
Annual Income ◽  
Regression Discontinuity Design ◽  
Market Returns ◽  
Labor Market Returns ◽  
Admissions Process

We study labor market returns to vocational versus general secondary education using a regression discontinuity design created by the centralized admissions process in Finland. Admission to the vocational track increases initial annual income, and this benefit persists at least through the mid-thirties, and present discount value calculations suggest that it is unlikely that life cycle returns will turn negative through retirement. Moreover, admission to the vocational track does not increase the likelihood of working in jobs at risk of replacement by automation or offshoring. Consistent with comparative advantage, we observe larger returns for people who express a preference for vocational education. (JEL D15, I21, I26, J24, J31, O33)

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