IDEAS home Printed from https://ideas.repec.org/a/eee/injoed/v103y2023ics0738059323001621.html
   My bibliography  Save this article

Revisiting the wage effects of vocational education and training (VET) over the life cycle: The case of Thailand

Author

Listed:
  • Wongmonta, Sasiwooth

Abstract

This paper estimates the potential impact of vocational education on wage differentials between vocational and general graduates over the life cycle in Thailand, using the national Labor Force Survey (LFS) from 2017 to 2022. The returns to vocational education are analyzed at three levels of education: upper secondary, diploma, and college. The inverse-probability-weighted regression adjustment (IPWRA) method is implemented to account for non-random assignment in choosing the academic track. The results show, on average, that vocational educated workers receive higher wages than those with general education, but it has no significant differences by comparing to university graduates in science and engineering with the same years of education. Additionally, the wage premiums associated to vocational education tend to increase at older ages. The empirical evidence corroborates the crucial role of vocational education in increasing long-term earnings and the number of technical-skilled workers in the Thai labor market.

Suggested Citation

  • Wongmonta, Sasiwooth, 2023. "Revisiting the wage effects of vocational education and training (VET) over the life cycle: The case of Thailand," International Journal of Educational Development, Elsevier, vol. 103(C).
    • Handle: RePEc:eee:injoed:v:103:y:2023:i:c:s0738059323001621
    DOI: 10.1016/j.ijedudev.2023.102886
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0738059323001621
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijedudev.2023.102886?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mikko Silliman & Hanna Virtanen, 2022. "Labor Market Returns to Vocational Secondary Education," American Economic Journal: Applied Economics, American Economic Association, vol. 14(1), pages 197-224, January.
    2. Wooldridge, Jeffrey M., 2007. "Inverse probability weighted estimation for general missing data problems," Journal of Econometrics, Elsevier, vol. 141(2), pages 1281-1301, December.
    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. Cattaneo, Matias D., 2010. "Efficient semiparametric estimation of multi-valued treatment effects under ignorability," Journal of Econometrics, Elsevier, vol. 155(2), pages 138-154, April.
    5. Maïlys Korber, 2019. "Does Vocational Education Give a Labour Market Advantage over the Whole Career? A Comparison of the United Kingdom and Switzerland," Social Inclusion, Cogitatio Press, vol. 7(3), pages 202-223.
    6. Chen, Jie & Pastore, Francesco, 2021. "Does vocational education pay better, or worse, than academic education?," GLO Discussion Paper Series 858, Global Labor Organization (GLO).
    7. Warunsiri, Sasiwimon & McNown, Robert, 2010. "The Returns to Education in Thailand: A Pseudo-Panel Approach," World Development, Elsevier, vol. 38(11), pages 1616-1625, November.
    8. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    9. Guo, Dong & Wang, Anyi, 2020. "Is vocational education a good alternative to low-performing students in China," International Journal of Educational Development, Elsevier, vol. 75(C).
    10. 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.
    11. Bart H. H. Golsteyn & Anders Stenberg, 2017. "Earnings over the Life Course: General versus Vocational Education," Journal of Human Capital, University of Chicago Press, vol. 11(2), pages 167-212.
    12. Petri Böckerman & Mika Haapanen & Christopher Jepsen, 2018. "More skilled, better paid: labour-market returns to postsecondary vocational education," Oxford Economic Papers, Oxford University Press, vol. 70(2), pages 485-508.
    13. 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.
    14. Héctor Espinoza & Stefan Speckesser, 2022. "A comparison of earnings related to higher technical and academic education," Education Economics, Taylor & Francis Journals, vol. 30(6), pages 644-659, November.
    15. David Newhouse & Daniel Suryadarma, 2011. "The Value of Vocational Education: High School Type and Labor Market Outcomes in Indonesia," The World Bank Economic Review, World Bank, vol. 25(2), pages 296-322, May.
    16. Moenjak, Thammarak & Worswick, Christopher, 2003. "Vocational education in Thailand: a study of choice and returns," Economics of Education Review, Elsevier, vol. 22(1), pages 99-107, February.
    17. Giorgio Brunello & Lorenzo Rocco, 2017. "The Labor Market Effects of Academic and Vocational Education over the Life Cycle: Evidence Based on a British Cohort," Journal of Human Capital, University of Chicago Press, vol. 11(1), pages 106-166.
    18. Sasiwimon Warunsiri Paweenawat & Jessica Vechbanyongratana, 2015. "Wage Consequences of Rapid Tertiary Education Expansion in a Developing Economy: The Case of Thailand," The Developing Economies, Institute of Developing Economies, vol. 53(3), pages 218-231, September.
    19. Lisha Agarwal & Giorgio Brunello & Lorenzo Rocco, 2021. "The Pathways to College," Journal of Human Capital, University of Chicago Press, vol. 15(4), pages 554-595.
    20. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    21. Tanthaka Vivatsurakit & Jessica Vechbanyongratana, 2020. "Returns to education among the informally employed in Thailand," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 34(1), pages 26-43, May.
    22. Kaewkwan Tangtipongkul, 2015. "Rates of Return to Schooling in Thailand," Asian Development Review, MIT Press, vol. 32(2), pages 38-64, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Celeste K. Carruthers & Christopher Jepsen, 2020. "Vocational Education: An International Perspective," CESifo Working Paper Series 8718, CESifo.
    2. Hector Espinoza & Stefan Speckesser, 2019. "A comparison of earnings related to higher level vocational/technical and academic education," CVER Research Papers 019, Centre for Vocational Education Research.
    3. 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.
    4. Kemper, Johanna & Renold, Ursula, 2024. "Evaluating the impact of general versus vocational education on labor market outcomes in Egypt by means of a regression discontinuity design," Journal of Development Economics, Elsevier, vol. 166(C).
    5. Dai, Li & Martins, Pedro S., 2024. "The Wage Effects of Polytechnic Degrees: Evidence from the 1999 China Higher Education Expansion," GLO Discussion Paper Series 1399, Global Labor Organization (GLO).
    6. Ollikainen, Jani-Petteri, 2021. "Comprehensive school reform and labor market outcomes over the lifecycle: Evidence from Finland," Labour Economics, Elsevier, vol. 68(C).
    7. Gordon Dahl & Dan-Olof Rooth & Anders Stenberg, 2020. "High School Majors, Comparative (Dis)Advantage, and Future Earnings," NBER Working Papers 27524, National Bureau of Economic Research, Inc.
    8. Huzeyfe Torun & Semih Tumen, 2019. "Do vocational high school graduates have better employment outcomes than general high school graduates?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 40(8), pages 1364-1388, August.
    9. Eichhorst, Werner & Rodríguez-Planas, Núria & Schmidl, Ricarda & Zimmermann, Klaus F., 2012. "A Roadmap to Vocational Education and Training Systems Around the World," IZA Discussion Papers 7110, Institute of Labor Economics (IZA).
    10. Irene Kriesi & Fabian Sander, 2024. "Academic or vocational education? A comparison of the long-term wage development of academic and vocational tertiary degree holders," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 58(1), pages 1-28, December.
    11. Dahl, Gordon B. & Rooth, Dan-Olof & Stenberg, Anders, 2020. "Long-Run Returns to Field of Study in Secondary School," IZA Discussion Papers 13508, Institute of Labor Economics (IZA).
    12. Elad Demalach & Noam Zussman, 2017. "The Effect of Vocational Education on Short- and Long-Term Outcomes of Students: Evidence from the Arab Education System in Israel," Bank of Israel Working Papers 2017.11, Bank of Israel.
    13. Oswald-Egg, Maria Esther & Renold, Ursula, 2021. "No experience, no employment: The effect of vocational education and training work experience on labour market outcomes after higher education," Economics of Education Review, Elsevier, vol. 80(C).
    14. Cnossen, Femke & Piracha, Matloob & Tchuente, Guy, 2021. "Learning the Right Skill: The Returns to Social, Technical and Basic Skills for Middle-Educated Graduates," GLO Discussion Paper Series 979, Global Labor Organization (GLO).
    15. Balestra, Simone & Backes-Gellner, Uschi, 2017. "Heterogeneous returns to education over the wage distribution: Who profits the most?," Labour Economics, Elsevier, vol. 44(C), pages 89-105.
    16. Franziska Hampf & Ludger Woessmann, 2017. "Vocational vs. General Education and Employment over the Life Cycle: New Evidence from PIAAC," CESifo Economic Studies, CESifo Group, vol. 63(3), pages 255-269.
    17. Hanushek, Eric A., 2013. "Economic growth in developing countries: The role of human capital," Economics of Education Review, Elsevier, vol. 37(C), pages 204-212.
    18. Christina Langer & Simon Wiederhold, 2023. "The Value of Early-Career Skills," Working Papers 222, Bavarian Graduate Program in Economics (BGPE).
    19. Padang Wicaksono & Lionel Priyadi, 2018. "Does Manufacturing Sophistication Lead to Higher Demand for Vocational Workers? Evidence from Indonesia," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 64, pages 59-72, Juni.
    20. Eric A. Hanushek, 2017. "Education and the Growth-Equity Trade-Off," NBER Chapters, in: Education, Skills, and Technical Change: Implications for Future US GDP Growth, pages 293-312, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Vocational education; Returns to education; Wage differentials; Human capital; Thailand;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    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:eee:injoed:v:103:y:2023:i:c:s0738059323001621. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/international-journal-of-educational-development .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.