From School to Work: The Effects of Secondary Vocational Education on Employment and Earnings in Low- and MiddleIncome Countries

Abstract

This paper examines the impact of secondary vocational education (TVE) on labour outcomes in low and middle-income countries. Using data from the Young Lives study across Peru, India, Vietnam, and Ethiopia, this paper estimates the effects of TVE through propensity scoreweighted regressions, controlling for selection biases using an unprecedented range of baseline characteristics. I find that attending TVE provides no benefits over attending general secondary education. However, I argue the unique value of TVE lies in its ability to provide a different educational pathway, predicting that without TVE over 54% of vocational students would have dropped out after primary. This is an important effect, as attending TVE compared to dropping out after primary school brings major labour market advantages, although only for female students: female vocational students are 50% more likely to be employed, 68% more likely to have a formal job than dropouts, and work 8 hours more per week. These large effects may justify investments in secondary vocational education. For practitioners, this implicates that the general procedure of evaluating TVE impact by directly comparing general with vocational secondary students is shortsighted. Instead, the more critical question is how effective a vocational secondary school is in helping potential dropouts continue their secondary education: for those students TVE is of greatest value.