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The Myth of Parity of Esteem: Earnings and Qualifications

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  • Peter Robinson

Abstract

There is no parity of esteem between academic and vocational qualifications in the labour market. Data from the Labour Force Survey show that on average men and women working full-time with academic qualifications at one level in the national qualifications framework earn about the same as men and women with vocational qualifications set notionally one level higher. So those with A levels have earnings similar to those with higher or level 4 vocational qualifications, those with 5 or more O levels or higher grade GCSEs have earnings similar to those with level 3 vocational qualifications, and those with 1-4 O levels or higher grade GCSEs have earnings similar to those with level 2 vocational qualifications. These higher earnings occur firstly because academic qualifications at a given level are more successful in buying access to more highly paid occupations. Secondly, within the most highly paid managerial, professional and technical occupations, academic qualifications are associated with higher earnings. These findings raise significant issues for public policy, calling into question the way in which the UK's National Targets for Education and Training have been formulated and much work on international comparisons of educational attainment.

Suggested Citation

  • Peter Robinson, 1997. "The Myth of Parity of Esteem: Earnings and Qualifications," CEP Discussion Papers dp0354, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp0354
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    Cited by:

    1. Gavan Conlon & Sophie Hedges & Pietro Patrignani, 2018. "Settling the counterfactual debate: Is there a preferable counterfactual when estimating the returns to vocational qualifications?," CVER Research Papers 013, Centre for Vocational Education Research.
    2. Colin Lindsay & Garry Sturgeon, 2003. "Local Responses to Longterm Unemployment: Delivering Access to Employment in Edinburgh," Local Economy, London South Bank University, vol. 18(2), pages 159-173, May.
    3. 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).
    4. P Rudd & Hilary Steedman, 1997. "GCSE Grades and GNVQ Outcomes: Results of a Pilot Study," CEP Discussion Papers dp0366, Centre for Economic Performance, LSE.
    5. repec:cep:cepisp:is03 is not listed on IDEAS
    6. Erich Battistin & Barbara Sianesi, 2006. "Misreported schooling and returns to education: evidence from the UK," CeMMAP working papers CWP07/06, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    7. Martina Dieckhoff, 2008. "Skills and occupational attainment: a comparative study of Germany, Denmark and the UK," Work, Employment & Society, British Sociological Association, vol. 22(1), pages 89-108, March.
    8. Anne Gasteen & John Houston, 2007. "Employability and Earnings Returns to Qualifications in Scotland," Regional Studies, Taylor & Francis Journals, vol. 41(4), pages 443-452.
    9. Chiara Cavaglia & Sandra McNally & Guglielmo Ventura, 2020. "Do Apprenticeships Pay? Evidence for England," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(5), pages 1094-1134, October.
    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. Gavan Conlon, 2001. "The incidence and outcomes associated with the late attainment of qualifications in the United Kingdom," CEE Discussion Papers 0013, Centre for the Economics of Education, LSE.
    12. 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.
    13. Phil Evans, 1998. "Why has the female unemployment rate fallen so much in Britain?," Bank of England working papers 87, Bank of England.
    14. Peter Davies & Nick Adnett, "undated". "QUASI-MARKET REFORMS AND VOCATIONAL SCHOOLING IN ENGLAND AND WALES: an economic analysis," Working Papers 98-11, Staffordshire University, Business School.
    15. Pablo Burriel-Llombart & Jonathan Thomas, 2001. "Skill imbalances in the UK labour market: 1979-99," Bank of England working papers 145, Bank of England.
    16. Gavan Conlon, 2002. "The Determinants of Undertaking Academic and Vocational Qualifications in the UK," CEE Discussion Papers 0020, Centre for the Economics of Education, LSE.

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