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Risk and heterogeneity in benefits from vocational versus general secondary education: estimates for early and mature career stages

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Listed:
  • Hugo Reis
  • Joop Hartog
  • Pedro Raposo

Abstract

We estimate a dynamic model of individual labour market careers (turnover and search, wage development) on Portuguese panel data of graduates from vocational and general secondary education. We find that vocational graduates benefit more from the internal labour market than from the external market. This holds even more for mature than for young individuals. This hurts as among the mature, vocational has higher lay-off probability. To the common result that vocational education trades early employment advantage for later disadvantage we add a decomposition of employment status in its dynamic components. To the literature on wage effects we add a breakdown of variances in heterogeneity and risk.

Suggested Citation

  • Hugo Reis & Joop Hartog & Pedro Raposo, 2024. "Risk and heterogeneity in benefits from vocational versus general secondary education: estimates for early and mature career stages," Working Papers w202405, Banco de Portugal, Economics and Research Department.
    • Handle: RePEc:ptu:wpaper:w202405
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    File URL: https://www.bportugal.pt/sites/default/files/documents/2024-04/WP202405.pdf
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    References listed on IDEAS

    as
    1. Eric A. Hanushek & Guido Schwerdt & Ludger Woessmann & Lei Zhang, 2017. "General Education, Vocational Education, and Labor-Market Outcomes over the Lifecycle," Journal of Human Resources, University of Wisconsin Press, vol. 52(1), pages 48-87.
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    More about this item

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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