The differential in earnings premia between academically and vocationally trained males in the United Kingdom

(2001) - Gavan Conlon

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Tags:: #paper #Gender #NCDS #Attainment
Cite Key:: [@Conlon2001]

Abstract

This paper estimates the rate of return associated with alternative levels and types of qualification in the United Kingdom. The analysis is restricted to males aged between sixteen and fifty-nine and uses alternative estimation techniques including ordinary least squares, instrumental variables and a Heckman Selection approach. In addition, the work presented here utilises different information sources, both cross sectional (Labour Force Surveys) and longitudinal (National Child Development Study). This is done in an attempt to compare the findings when using alternative information sources which contain markedly different information relating to the personal characteristics of the individuals being analysed. It is found that there is a statistically significant differential in the earnings premium achieved by the academically and vocationally qualified at the every level of qualification within the National Vocational Qualification classification of qualifications. This differential is invariant to the method of estimation and the data source. The differential approximates 5% at National Vocational Qualification Level 1, rising by an additional 5% at each successive level of qualification. This implies that degree holders achieve a 20% premium over those males in possession of vocational qualifications at an equivalent level of qualification attainment (NVQ Level 4).

Notes

“ifferential in the earnings premium achieved by the academically and vocationally qualified at the every level of qualification within the National Vocational Qualification classification of qualifications.” (Conlon, 2001, p. 3)

“The differential approximates 5% at National Vocational Qualification Level 1, rising by an additional 5% at each successive level of qualification. This implies that degree holders achieve a 20% premium over those males in possession of vocational qualifications at an equivalent level of qualification attainment (NVQ Level 4).” (Conlon, 2001, p. 3)