Long-term labor market returns to upper secondary school track choice: Leveraging idiosyncratic variation in peers’ choices

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Standard

Long-term labor market returns to upper secondary school track choice : Leveraging idiosyncratic variation in peers’ choices. / Birkelund, Jesper Fels; van de Werfhorst, Herman G.

I: Social Science Research, Bind 102, 102629, 2022.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Birkelund, JF & van de Werfhorst, HG 2022, 'Long-term labor market returns to upper secondary school track choice: Leveraging idiosyncratic variation in peers’ choices', Social Science Research, bind 102, 102629. https://doi.org/10.1016/j.ssresearch.2021.102629

APA

Birkelund, J. F., & van de Werfhorst, H. G. (2022). Long-term labor market returns to upper secondary school track choice: Leveraging idiosyncratic variation in peers’ choices. Social Science Research, 102, [102629]. https://doi.org/10.1016/j.ssresearch.2021.102629

Vancouver

Birkelund JF, van de Werfhorst HG. Long-term labor market returns to upper secondary school track choice: Leveraging idiosyncratic variation in peers’ choices. Social Science Research. 2022;102. 102629. https://doi.org/10.1016/j.ssresearch.2021.102629

Author

Birkelund, Jesper Fels ; van de Werfhorst, Herman G. / Long-term labor market returns to upper secondary school track choice : Leveraging idiosyncratic variation in peers’ choices. I: Social Science Research. 2022 ; Bind 102.

Bibtex

@article{a0eb625448d84f95902621a906f26614,
title = "Long-term labor market returns to upper secondary school track choice: Leveraging idiosyncratic variation in peers{\textquoteright} choices",
abstract = "Vocational education and training (VET) is theorized to play a dual role for inequality of labor market outcomes: the role of a safety net and the role of socioeconomic diversion. In this paper, we test these hypotheses by examining the long-term labor market returns to track choice in upper secondary education in Denmark using an instrumental variable approach that relies on random variation in school peers{\textquoteright} educational decisions. We report two main findings. First, VET diverts students on the margin to the academic track away from higher-status but not higher-paying occupations. Second, VET protects students on the margin to leaving school from risks of non-employment and unskilled work, also leading to higher earnings. These results suggest that in countries with a highly compressed wage structure, a strong VET system benefits students unlikely to continue to college, while causing few adverse consequences for students on the margin to choosing academic education.",
keywords = "Faculty of Social Sciences, Educational tracking, Vocational education, Labor market outcomes, Earnings, Instrumental variables, Peer effects",
author = "Birkelund, {Jesper Fels} and {van de Werfhorst}, {Herman G.}",
year = "2022",
doi = "10.1016/j.ssresearch.2021.102629",
language = "English",
volume = "102",
journal = "Social Science Research",
issn = "0049-089X",
publisher = "Academic Press",

}

RIS

TY - JOUR

T1 - Long-term labor market returns to upper secondary school track choice

T2 - Leveraging idiosyncratic variation in peers’ choices

AU - Birkelund, Jesper Fels

AU - van de Werfhorst, Herman G.

PY - 2022

Y1 - 2022

N2 - Vocational education and training (VET) is theorized to play a dual role for inequality of labor market outcomes: the role of a safety net and the role of socioeconomic diversion. In this paper, we test these hypotheses by examining the long-term labor market returns to track choice in upper secondary education in Denmark using an instrumental variable approach that relies on random variation in school peers’ educational decisions. We report two main findings. First, VET diverts students on the margin to the academic track away from higher-status but not higher-paying occupations. Second, VET protects students on the margin to leaving school from risks of non-employment and unskilled work, also leading to higher earnings. These results suggest that in countries with a highly compressed wage structure, a strong VET system benefits students unlikely to continue to college, while causing few adverse consequences for students on the margin to choosing academic education.

AB - Vocational education and training (VET) is theorized to play a dual role for inequality of labor market outcomes: the role of a safety net and the role of socioeconomic diversion. In this paper, we test these hypotheses by examining the long-term labor market returns to track choice in upper secondary education in Denmark using an instrumental variable approach that relies on random variation in school peers’ educational decisions. We report two main findings. First, VET diverts students on the margin to the academic track away from higher-status but not higher-paying occupations. Second, VET protects students on the margin to leaving school from risks of non-employment and unskilled work, also leading to higher earnings. These results suggest that in countries with a highly compressed wage structure, a strong VET system benefits students unlikely to continue to college, while causing few adverse consequences for students on the margin to choosing academic education.

KW - Faculty of Social Sciences

KW - Educational tracking

KW - Vocational education

KW - Labor market outcomes

KW - Earnings

KW - Instrumental variables

KW - Peer effects

U2 - 10.1016/j.ssresearch.2021.102629

DO - 10.1016/j.ssresearch.2021.102629

M3 - Journal article

C2 - 35094761

VL - 102

JO - Social Science Research

JF - Social Science Research

SN - 0049-089X

M1 - 102629

ER -

ID: 279644444