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Effects of Training, Occupation, and Training-Occupation Match on Wage

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  • Lawrence Hotchkiss

Abstract

This paper investigates the interactions of secondary vocational training and training-related occupation on the wage of the first job obtained in the two years immediately after high school. Prior empirical tests of the importance of a training-related occupation in determining labor market outcomes are misspecified because they do not separate training-related effects from effects of the type of occupation entered. Since the concept of a training-related occupation is based on a match between the type of training and the type of occupation, it is possible that apparent effects of a training-related occupation are, in fact, only an effect of the occupation with which the training is matched. We use data from the younger cohort of the High School and Beyond sample to conduct an evaluation of the importance of a training-related occupation. Our findings agree with past research in that large positive coefficients are associated with work in a training-related occupation when the type of occupation is omitted from the model. However, when the type of occupation is included, nearly all the effects on wage are associated with occupation and not with training nor with a training-related occupation. Estimates from both OLS and switching regressions are consistent with these conclusions.

Suggested Citation

  • Lawrence Hotchkiss, 1993. "Effects of Training, Occupation, and Training-Occupation Match on Wage," Journal of Human Resources, University of Wisconsin Press, vol. 28(3), pages 482-496.
    • Handle: RePEc:uwp:jhriss:v:28:y:1993:i:3:p:482-496
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    Cited by:

    1. Amaechi N. Nwaokoro, 2017. "Survey of Free Market Principles for Encouraging Market: Participation of African American and the Economically Challenged," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(1), pages 130-144, January.
    2. 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.
    3. Andersson, Roland & Nabavi Larijani, Pardis & Wilhelmsson, Mats, 2013. "The impact of vocational education and training on income in Sweden," Working Paper Series 13/4, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance.
    4. 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).
    5. 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.
    6. Irene Brunetti & Lorenzo Corsini, 2019. "School-to-work transition and vocational education: a comparison across Europe," International Journal of Manpower, Emerald Group Publishing Limited, vol. 40(8), pages 1411-1437, July.
    7. 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.
    8. Amaechi N. Nwaokoro & Victor Williams & Sandra Washington, 2021. "Several Unfavorable Estimates on African Americans Implicate Poverty: Need for More Understanding and Participating in the Market Economy," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(9), pages 1-84, August.
    9. Meer, Jonathan, 2007. "Evidence on the returns to secondary vocational education," Economics of Education Review, Elsevier, vol. 26(5), pages 559-573, October.
    10. 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.
    11. 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.
    12. Bairagya, Indrajit, 2021. "Impact of formal vocational training on the earnings of self-employed individuals in rural India," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    13. Brunello, Giorgio & Rocco, Lorenzo, 2015. "The Labour Market Effects of Academic and Vocational Education over the Life Cycle: Evidence from Two British Cohorts," IZA Discussion Papers 9275, Institute of Labor Economics (IZA).
    14. 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.
    15. Julia Kuzmina & Martin Carnoy, 2015. "The Effectiveness Of Vocational Versus General Secondary Education: Evidence From Pisa 2012 For Countries With Early Trackin," HSE Working papers WP BRP 23/EDU/2015, National Research University Higher School of Economics.
    16. Cörvers, F. & Heijke, J.A.M. & Kriechel, B. & Pfeifer, H., 2011. "High and steady or low and rising? : life-cycle earnings patterns in vocational and general education," ROA Research Memorandum 007, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    17. Giorgio Brunello & Lorenzo Rocco, 2017. "The effects of vocational education on adult skills, employment and wages: What can we learn from PIAAC?," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 8(4), pages 315-343, November.

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