THE EFFECT OF VOCATIONAL EDUCATION ON SHORT- AND LONG-TERM OUTCOMES

Elad DeMalach and Noam Zussman
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Noam Zussman: Bank of Israel

Israel Economic Review, 2023, vol. 21, issue 2, 1-56

Abstract: This study examines the effect of vocational education on the short- and long-term outcomes of students who attended the Arab education system in Israel during the 1990s. To avoid possible biases resulting from the selection of students for vocational education, the study exploits a reform that was implemented in the Arab education system. The reform led to the opening of new vocational tracks in localities that either did not have vocational studies beforehand or had such studies but only on a small scale (treatment localities). These localities are compared with similar localities in which no new tracks were opened (comparison localities). Difference-in-differences estimates show a 4–5 percentage point decrease in the probability of dropping out of high school after the new tracks opened, which is about 35 (15) percent of the average dropout rate for girls (boys). The proportion of students taking matriculation exams increase but there was no effect on matriculation eligibility rate. Most of the beneficial effects of the vocational tracks become evident two years after the tracks open. Opening the vocational tracks had no significant long-term effect on the likelihood of the students acquiring a tertiary academic education, on being employed, or on their earnings in adulthood. There was a significant increase in the number of women entering clerical occupations, consistent with the popularity of the new clerical tracks. There has also been a significant decrease in the proportion of girls marrying at a young age, probably due to the increase in the probability of their completing high school.

Date: 2023
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