Returns to vocational education in Portugal

Abstract

In a context of increasing investment in vocational education, it is highly relevant to investigate the impact of this type of education over labor market outcomes. Following a panel of individuals with upper secondary attainment born between January 1974 and December 1990, this study assesses the wage returns to vocational education and general education, between 1993 and 2009. Estimates from a random effects model revealed a wage advantage for workers with vocational education vis-à-vis workers with general education, in the beginning of the career. However, the earnings of the former group grow at a slower rate and are surpassed by the earnings of the latter group at around eight years of experience.