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Can vocational education improve schooling and labour outcomes? Evidence from a large expansion

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  • Joao R. Ferreira
  • Pedro S. Martins

Abstract

We evaluate the education and labour impact of vocational education and training (VET). Identification draws on a reform to reduce early school leaving, which involved a large-scale, staggered introduction of VET courses. Drawing on comprehensive student-school matched panel data, we find that VET increased upper secondary graduation rates considerably: our LATE estimates are as large as 50 percentage points. These effects are even stronger for low-achieving students and welfare recipients; and also hold when exploiting the large gender differences of VET, with many courses selected almost only by either boys or girls. Moreover, we find evidence of regional youth employment growth and VET wage premiums following VET expansion.

Suggested Citation

  • Joao R. Ferreira & Pedro S. Martins, 2023. "Can vocational education improve schooling and labour outcomes? Evidence from a large expansion," Nova SBE Working Paper Series wp658, Universidade Nova de Lisboa, Nova School of Business and Economics.
    • Handle: RePEc:unl:unlfep:wp658
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    Cited by:

    1. Martins, Pedro S., 2022. "The wage effects of employers' associations: A case study of the private schools sector," GLO Discussion Paper Series 1163, Global Labor Organization (GLO).
    2. Dai, Li & Martins, Pedro S., 2024. "The Wage Effects of Polytechnic Degrees: Evidence from the 1999 China Higher Education Expansion," GLO Discussion Paper Series 1399, Global Labor Organization (GLO).
    3. Martins, Pedro S. & Ferreira, João R., 2024. "Effects of Individual Incentive Reforms in the Public Sector: The Case of Teachers," GLO Discussion Paper Series 1441, Global Labor Organization (GLO).
    4. Dai, Li & Martins, Pedro S., 2024. "Does vocational education pay off in China? Evidence from city-level education supply shocks," Economic Modelling, Elsevier, vol. 140(C).

    More about this item

    Keywords

    Educational attainment; Vocational education; Matched student-teacher-school; data; Portugal;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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