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Vocational high school graduate wage gap: the role of cognitive skills and firms

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  • Hugo Reis
  • Joop Hartog

Abstract

Comparing cohorts born between 1951 and 1994, we document and interpret changes in the wage differential among graduates from secondary education with a vocational and a general curriculum. The wage gap initially increased and then decreased. We find that these changes cannot be attributed to simple compositional shifts in the economy, but instead relate to important changes in worker allocation to firms that are heterogeneous in wage policies: the demise of assortative matching between workers and firms that worked out favourably for vocational graduates. Our results suggest that reforms of vocational education initiated in the late 1980’s have been a successful policy intervention.

Suggested Citation

  • Hugo Reis & Joop Hartog, 2019. "Vocational high school graduate wage gap: the role of cognitive skills and firms," Working Papers w201903, Banco de Portugal, Economics and Research Department.
    • Handle: RePEc:ptu:wpaper:w201903
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    References listed on IDEAS

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    More about this item

    JEL classification:

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

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