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Labour Market Returns to Vocational Qualifications in the Labour Force Survey

Author

Listed:
  • Steven McIntosh
  • Damon Morris

Abstract

This report uses data from the Labour Force Survey covering the period 1997-2015, to estimate wage premiums, or returns, to acquiring vocational qualifications. Different specifications of the wage equations are estimated, alternatively considering individuals who hold each qualification as their highest, and also the average returns across all individuals who hold a qualification whether or not it is their highest. The key message that comes out of the results, is that there is substantial variation in the estimated returns to vocational qualifications, across types of qualifications, levels, study subjects, and across points of the wage distribution. It is therefore not the case that a simple message about the returns to vocational qualifications can be delivered. Future work in this area needs to explain this variation in the value of vocational education.

Suggested Citation

  • Steven McIntosh & Damon Morris, 2016. "Labour Market Returns to Vocational Qualifications in the Labour Force Survey," CVER Research Papers 002, Centre for Vocational Education Research.
    • Handle: RePEc:cep:cverdp:002
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    File URL: https://cver.lse.ac.uk/textonly/cver/pubs/cverdp002.pdf
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    References listed on IDEAS

    as
    1. Steven Mcintosh, 2006. "Further Analysis of the Returns to Academic and Vocational Qualifications," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(2), pages 225-251, April.
    2. 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.
    3. 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.
    4. Lorraine Dearden & Leslie McGranahan & Barbara Sianesi, 2004. "An In-Depth Analysis of the Returns to National Vocational Qualifications Obtained at level 2," CEE Discussion Papers 0046, Centre for the Economics of Education, LSE.
    5. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    6. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    7. Charley Greenwood & Andrew Jenkins & Anna Vignoles, 2007. "The Returns to Qualifications in England: Updating the Evidence Base on Level 2 and Level 3 Vocational Qualifications," CEE Discussion Papers 0089, Centre for the Economics of Education, LSE.
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    Citations

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    Cited by:

    1. Li Dai & Pedro S. Martins, 2020. "Does vocational education pay off in China? Instrumental-variable quantile-regression evidence," Working Papers 100, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    2. Gavan Conlon & Sophie Hedges & Pietro Patrignani, 2018. "Further analysis of the earnings differentials associated with BTECs," CVER Briefing Notes 006, Centre for Vocational Education Research.

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    More about this item

    Keywords

    vocational education; wages; labour market;
    All these keywords.

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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