A new GLO Discussion Paper studies the wage gap between vocational and general secondary education in Portugal to find no support for the human capital prediction of crossing wage profiles and no support either for the hypothesis that general graduates increasingly outperform vocational graduates in late career.
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GLO Discussion Paper No. 769, 2021
Fluctuations in the wage gap between vocational and general secondary education: lessons from Portugal – Download PDF
by Hartog, Joop & Raposo, Pedro S. & Reis, Hugo
GLO Fellow Hugo Reis
Author Abstract: We document and analyze the wage gap between vocational and general secondary education in Portugal between 1994 and 2013. As Portuguese workers have been educated in different school systems, we have to distinguish birth cohorts. Analyzing the wage gaps within cohorts, we find no support for the human capital prediction of crossing wage profiles and no support either for the hypothesis that general graduates increasingly outperform vocational graduates in late career. We discover that the lifecycle wage profiles have shifted over time. We link the pattern of shifting cohort profiles to changes in the school system and in the structure of labor demand. We conclude that assessing the relative value of vocational education requires to assess how the vocational curriculum responds to changes in economic structure and technology. We show that the decline in assortative matching between workers and firms has benefited vocationally educated workers.
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