Meet the need – The role of vocational education and training for the youth labour market

Thomas Bolli (), Maria Esther Egg () and Ladina Rageth ()
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Thomas Bolli: KOF Swiss Economic Institute, ETH Zurich, Switzerland
Maria Esther Egg: KOF Swiss Economic Institute, ETH Zurich, Switzerland
Ladina Rageth: KOF Swiss Economic Institute, ETH Zurich, Switzerland

No 17-429, KOF Working papers from KOF Swiss Economic Institute, ETH Zurich

Abstract: To fight negative trends in the youth labour market, policymakers around the world foster vocational education and training programmes (VET). We therefore investigate how the share of three upper secondary education programmes, i.e. general education, school-based VET, and dual VET, affect the labour market of 15-to24-year-olds. We complement the existing literature by analysing non-linear effects that might arise due to general equilibrium effects. Furthermore, we include ten labour market indicators for integration and job quality. To address unobserved heterogeneity across countries, we run ?xed effects regressions on unbalanced panel data of 35 countries from 2004 to 2014. We ?nd that school-based VET hinders youth labour market integration. In contrast, dual VET improves not only labour market integration but also job quality. However, the positive and negative effects of VET programmes diminish with increasing enrolment rates. Thus, policymakers should consider these different effects in their educational reforms.

Pages: 66 pages
Date: 2017-03
New Economics Papers: this item is included in nep-edu, nep-eur and nep-ure
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:kof:wpskof:17-429

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