Investing in Technical and Vocational Education and Training : Does it Yield Large Economic Returns in Brazil?
Technical education and training has been dramatically expanding in Brazil recently. However, there remains no evidence on the cost effectiveness of this alternative track to a more general education. This paper quantifies the wage returns of compl...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/04/24411547/investing-technical-vocational-education-training-yield-large-economic-returns-brazil http://hdl.handle.net/10986/21861 |
| Summary: | Technical education and training has
been dramatically expanding in Brazil recently. However,
there remains no evidence on the cost effectiveness of this
alternative track to a more general education. This paper
quantifies the wage returns of completing technical and
vocational education and training compared with the returns
of completing the general education track, for individuals
with similar observable characteristics. Exploring data from
the Brazilian National Household Sample Survey, the paper
profiles the students taking up this track and quantifies
the impact of different types of technical and vocational
education and training courses on individuals’ hourly wages.
After controlling for selection on observables with
propensity score matching, the analysis shows positive and
statistically significant wage premiums for students
completing technical school at the upper secondary level (on
average 9.7 percent ) and for those completing short-term
training courses (2.2 percent on average). The paper also
documents significant heterogeneity of impacts depending on
the courses and the profile of students. For realistic
unitary costs of providing technical and vocational
education and training, the evidence suggests technical
education is a cost-effective modality. The courses offered
by the publically financed and privately managed “Sistema
S,” together with courses in the manufacturing area have the
highest positive impacts. |
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