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Investing in technical&vocational education and training : does it yield large economic returns in Brazil ?

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  • Almeida,Rita Kullberg
  • Anazawa,Leandro
  • Menezes Filho,Naercio
  • Vasconcellos,Ligia Maria De

Abstract

Technical education and training has been dramatically expanding in Brazil recently. However, there remains no evidence on the cost effectiveness of this alternative track to a more general education. This paper quantifies the wage returns of completing technical and vocational education and training compared with the returns of completing the general education track, for individuals with similar observable characteristics. Exploring data from the Brazilian National Household Sample Survey, the paper profiles the students taking up this track and quantifies the impact of different types of technical and vocational education and training courses on individuals? hourly wages. After controlling for selection on observables with propensity score matching, the analysis shows positive and statistically significant wage premiums for students completing technical school at the upper secondary level (on average 9.7 percent ) and for those completing short-term training courses (2.2 percent on average). The paper also documents significant heterogeneity of impacts depending on the courses and the profile of students. For realistic unitary costs of providing technical and vocational education and training, the evidence suggests technical education is a cost-effective modality. The courses offered by the publically financed and privately managed ?Sistema S,? together with courses in the manufacturing area have the highest positive impacts.

Suggested Citation

  • Almeida,Rita Kullberg & Anazawa,Leandro & Menezes Filho,Naercio & Vasconcellos,Ligia Maria De, 2015. "Investing in technical&vocational education and training : does it yield large economic returns in Brazil ?," Policy Research Working Paper Series 7246, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7246
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    References listed on IDEAS

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    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.
    2. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    3. Rita Almeida & Jere Behrman & David Robalino, 2012. "The Right Skills for the Job? Rethinking Training Policies for Workers," World Bank Publications - Books, The World Bank Group, number 13075.
    4. repec:sip:wpaper:11-003 is not listed on IDEAS
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    1. Cristiano C. Carvalho & Raphael Corbi & Rodrigo De-Losso, 2021. "Estimating the Employment and Educational Effects of Vocational Training: the Role of School Quality," Working Papers, Department of Economics 2021_10, University of São Paulo (FEA-USP), revised 24 Mar 2021.
    2. Guo, Dong & Wang, Anyi, 2020. "Is vocational education a good alternative to low-performing students in China," International Journal of Educational Development, Elsevier, vol. 75(C).
    3. Kemper, Johanna & Renold, Ursula, 2024. "Evaluating the impact of general versus vocational education on labor market outcomes in Egypt by means of a regression discontinuity design," Journal of Development Economics, Elsevier, vol. 166(C).

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