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Labor market returns to college education with vocational qualifications

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  • Rzepka, Sylvi

Abstract

In this paper, I assess labor market returns of a substantial skill upgrade: college enrollment of the vocationally trained, non-traditional students who do not have the formal entry requirement. Using propensity-score adjusted regressions and the National Educational Panel Study, I find that these enrollees face high opportunity costs as they forgo earnings during the enrollment period. In the long-run, enrollees tend to obtain higher cumulative earnings than those who continue with a vocational training-based career, but, there is a large degree of uncertainty. On the positive side, enrollees attain jobs with a higher reputation in society, hinting at sizable non-monetary returns.

Suggested Citation

  • Rzepka, Sylvi, 2018. "Labor market returns to college education with vocational qualifications," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 26(4), pages 411-431.
    • Handle: RePEc:zbw:espost:180688
    DOI: 10.1080/09645292.2018.1440532
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    Cited by:

    1. Celeste K. Carruthers & Christopher Jepsen, 2020. "Vocational Education: An International Perspective," CESifo Working Paper Series 8718, CESifo.
    2. Zhang, Kexin, 2023. "The long-term impact of higher education: Evidence from the Gaokao reinstatement in China," Economics of Education Review, Elsevier, vol. 97(C).
    3. Somani, Ravi, 2021. "The returns to higher education and public employment," World Development, Elsevier, vol. 144(C).
    4. Seema Sangita, 2021. "Higher Education, Vocational Training and Performance of Firms," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 15(1), pages 122-148, February.
    5. Marwa Sahnoun & Chokri Abdennadher, 2022. "Returns to Investment in Education in the OECD Countries: Does Governance Quality Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 1819-1842, September.
    6. Huang, Bin & Xu, Lei & Zhu, Yu, 2019. "Does the higher education expansion in the UK reduce the returns to education? A comparison of returning-from-work versus fresh out-of-school graduates," Economic Modelling, Elsevier, vol. 79(C), pages 276-285.

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    More about this item

    Keywords

    Non-traditional students; vocational training; tertiary education; Germany;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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