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Department of Real Estate and Construction Management & Centre for Banking and Finance (cefin), Royal Institute of Technology Working Paper Series, Department of Real Estate and Construction Management & Centre for Banking and Finance (cefin), Royal Institute of Technology

No 13/4:
The impact of vocational education and training on income in Sweden

Roland Andersson, Pardis Nabavi Larijani and Mats Wilhelmsson ()

Abstract: The aim of this article is to investigate the impact of advanced vocational education and training (AVET) on earnings. We use a multiple longitudinal panel data set for the period 1996 to 2008. Moreover, we have a panel for eight different labour markets in Sweden. By estimating an income equation, we test, while controlling for selection bias, the impact, if any, of AVET on earnings. Ordinary least squares (OLS) estimates are compared with instrumental variable (IV) and Hausman–Taylor estimates, together with fixed effect estimates. We also restrict the sample to those individuals with a higher probability of attending vocational education and training. The results are rather robust and indicate that earnings are higher for individuals who have undertaken a vocational training programme. We use quantile regression techniques to estimate not only the mean return to vocational training effects but also distributional effects.

Keywords: Vocational training; Instrument variables; Hausman-Taylor; quantile regression; (follow links to similar papers)

JEL-Codes: I21; J01; J31; (follow links to similar papers)

37 pages, March 21, 2013

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