The Value of Vocational Education : High School Type and Labor Market Outcomes in Indonesia

This paper examines the relationship between the type of senior high school attended by Indonesian youth and their subsequent labor market outcomes. This topic is timely in light of a recent policy shift that aims to dramatically expand vocational education. The analysis controls for an unusually ri...

Full description

Bibliographic Details
Main Authors:	Newhouse, David, Suryadarma, Daniel
Format:	Journal Article
Language:	en_US
Published:	World Bank 2013
Subjects:	academic education curriculum employment employment outcomes high school graduates high school level high schools information technology labor force literature Ministry of Education national examinations private schools schools secondary education skilled workers social science student costs Vocational Education vocational schools
Online Access:	http://hdl.handle.net/10986/13476

id	okr-10986-13476
recordtype	oai_dc
spelling	okr-10986-134762021-04-23T14:03:08Z The Value of Vocational Education : High School Type and Labor Market Outcomes in Indonesia Newhouse, David Suryadarma, Daniel academic education curriculum employment employment outcomes high school graduates high school level high schools information technology labor force literature Ministry of Education national examinations private schools schools secondary education skilled workers social science student costs Vocational Education vocational schools This paper examines the relationship between the type of senior high school attended by Indonesian youth and their subsequent labor market outcomes. This topic is timely in light of a recent policy shift that aims to dramatically expand vocational education. The analysis controls for an unusually rich set of predetermined characteristics, and exploits longitudinal data spanning fourteen years to separately identify cohort and age effects. There are four main findings. First, the estimated wage premium for vocational graduates, relative to general graduates, is greater for women than men. Second, the returns to public vocational school for men have plummeted for the most recent cohort, and male vocational graduates now face a large wage penalty. Third, the generally favorable outcomes of public school graduates can be partly explained by non-random sorting of students with higher test scores and better-educated parents into public schools. Finally, these peer effects appear to be particularly important for students with above-average test scores, as men with high scores earn a surprisingly small premium from graduating from vocational or private general school. These small returns for high-scoring men, as well as the dramatic fall in the earnings premium for all male vocational graduates, raise important concerns about the current expansion of public vocational education and the relevance of the male vocational curriculum in an increasingly service-oriented economy. 2013-05-20T21:50:12Z 2013-05-20T21:50:12Z 2011-05-31 Journal Article World Bank Economic Review 1564-698X doi:10.1093/wber/lhr010 http://hdl.handle.net/10986/13476 en_US World Bank Economic Review;25(2) CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank World Bank Journal Article Indonesia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	academic education curriculum employment employment outcomes high school graduates high school level high schools information technology labor force literature Ministry of Education national examinations private schools schools secondary education skilled workers social science student costs Vocational Education vocational schools
spellingShingle	academic education curriculum employment employment outcomes high school graduates high school level high schools information technology labor force literature Ministry of Education national examinations private schools schools secondary education skilled workers social science student costs Vocational Education vocational schools Newhouse, David Suryadarma, Daniel The Value of Vocational Education : High School Type and Labor Market Outcomes in Indonesia
geographic_facet	Indonesia
relation	World Bank Economic Review;25(2)
description	This paper examines the relationship between the type of senior high school attended by Indonesian youth and their subsequent labor market outcomes. This topic is timely in light of a recent policy shift that aims to dramatically expand vocational education. The analysis controls for an unusually rich set of predetermined characteristics, and exploits longitudinal data spanning fourteen years to separately identify cohort and age effects. There are four main findings. First, the estimated wage premium for vocational graduates, relative to general graduates, is greater for women than men. Second, the returns to public vocational school for men have plummeted for the most recent cohort, and male vocational graduates now face a large wage penalty. Third, the generally favorable outcomes of public school graduates can be partly explained by non-random sorting of students with higher test scores and better-educated parents into public schools. Finally, these peer effects appear to be particularly important for students with above-average test scores, as men with high scores earn a surprisingly small premium from graduating from vocational or private general school. These small returns for high-scoring men, as well as the dramatic fall in the earnings premium for all male vocational graduates, raise important concerns about the current expansion of public vocational education and the relevance of the male vocational curriculum in an increasingly service-oriented economy.
format	Journal Article
author	Newhouse, David Suryadarma, Daniel
author_facet	Newhouse, David Suryadarma, Daniel
author_sort	Newhouse, David
title	The Value of Vocational Education : High School Type and Labor Market Outcomes in Indonesia
title_short	The Value of Vocational Education : High School Type and Labor Market Outcomes in Indonesia
title_full	The Value of Vocational Education : High School Type and Labor Market Outcomes in Indonesia
title_fullStr	The Value of Vocational Education : High School Type and Labor Market Outcomes in Indonesia
title_full_unstemmed	The Value of Vocational Education : High School Type and Labor Market Outcomes in Indonesia
title_sort	value of vocational education : high school type and labor market outcomes in indonesia
publisher	World Bank
publishDate	2013
url	http://hdl.handle.net/10986/13476
_version_	1764423584949731328

The Value of Vocational Education : High School Type and Labor Market Outcomes in Indonesia

Similar Items