General Education, Vocational Education, and Labor-Market Outcomes over the Life-Cycle

Policy proposals promoting vocational education focus on the school-to-work transition. But with technological change, gains in youth employment may be offset by less adaptability and diminished employment later in life. To test for this trade-off, a difference-indifferences approach that compares employment rates across different ages for people with general and vocational education is employed. Using micro data for 11 countries from International Adult Literacy Survey, strong and robust support for such a trade-off is found, especially in countries emphasizing apprenticeship programs. German Microcensus data and Austrian administrative data confirm the results for within-occupational-group analysis and for exogenous variation from plant closures, respectively.

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