Vocational Schooling, Labor Market Outcomes, and College Entry
This paper examines the differentiated outcomes of vocational and general secondary academic education, particularly in terms of employment opportunities, labor market earnings, and access to tertiary education in Indonesia. With data from a panel...
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090112092359 http://hdl.handle.net/10986/4012 |
| Summary: | This paper examines the differentiated
outcomes of vocational and general secondary academic
education, particularly in terms of employment
opportunities, labor market earnings, and access to tertiary
education in Indonesia. With data from a panel of two waves
of the Indonesia Family Life Survey in 1997 and 2000, the
paper tracks a cohort of high school students in 1997 to
examine their schooling and employment status in 2000. The
findings demonstrate that: (1) attendance at vocational
secondary schools results in neither market advantage nor
disadvantage in terms of employment opportunities and/or
earnings premium; (2) attendance at vocational schools leads
to significantly lower academic achievement as measured by
national test scores; and (3) There is no stigma attached to
attendance at vocational schools that results in a
disadvantage in access to tertiary education; rather, it is
the lower academic achievement associated with attendance at
vocational school that lowers the likelihood of entering
college. The empirical approach of this paper addresses two
limitations of the existing literature in this area. First,
it takes into account the observation censoring issue due to
college entry when evaluating labor market outcomes of
secondary school graduates. Second, using an instrumental
variable approach, the paper also treats endogeneity of
household choice of vocational versus academic track of
secondary education, teasing out the net effect of secondary
school choice on labor market and schooling outcomes. |
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