A1564
Title: Risk and heterogeneity in benefits from vocational versus general secondary education
Authors: Hugo Reis - Banco de Portugal (Portugal) [presenting]
Abstract: A dynamic model of individual labor market careers (turnover and search, wage development) is estimated on Portuguese panel data of graduates from vocational and general secondary education. It is found that vocational graduates benefit more from the internal labor market than from the external market. This is better for mature individuals than for young individuals. This hurts as among the mature, vocational has a higher lay-off probability. To the common result that vocational education trades early employment advantages for later disadvantages, a decomposition of employment status is added to its dynamic components. To the literature on wage effects, a breakdown of variances in heterogeneity and risk is added.
