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Vocational versus General Upper Secondary Education and Earnings

Author

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  • Eskil Heinesen
  • Elise Stenholt Lange

Abstract

We estimate the effects of completing vocational rather than general upper secondary education programs on earnings at age 28 and, using surrogate index techniques, at age 40. We apply longitudinal administrative data for Denmark and marginal treatment effect models, with distances to educational institutions as instruments. We find significant and substantial heterogeneity in earnings effects consistent with selection on gains. A policy shifting students at the margin towards vocational education tends to have small and insignificant long†term effects for females and for males with low math skills, but negative long†term effects for males with high math skills.

Suggested Citation

  • Eskil Heinesen & Elise Stenholt Lange, 2024. "Vocational versus General Upper Secondary Education and Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 59(5), pages 1535-1563.
  • Handle: RePEc:uwp:jhriss:v:59:y:2024:i:5:p:1535-1563
    Note: DOI: https://doi.org/10.3368/jhr.0221-11497R2
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    More about this item

    JEL classification:

    • 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
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation

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