Vocational High School Graduate Wage Gap: The Role of Cognitive Skills and Firms

58 Pages Posted: 11 Jun 2018

See all articles by Joop Hartog

Joop Hartog

University of Amsterdam - Faculty of Economics and Business (FEB); Tinbergen Institute; CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Pedro S. Raposo

Tilburg University - Center for Economic Research (CentER)

Hugo Reis

Banco de Portugal

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Abstract

Comparing cohorts born between 1951 and 1994, we document and interpret changes in the wage differential among graduates from secondary education with a vocational and a general curriculum. The wage gap initially increased and then decreased. We find that these changes cannot be attributed to simple compositional shifts in the economy, but instead relate to important changes in worker allocation to firms that are heterogeneous in wage policies: the demise of assortative matching between workers and firms that worked out favourably for vocational graduates.

Keywords: returns to education, vocational wage gap

JEL Classification: J31, I26

Suggested Citation

Hartog, Joop and Raposo, Pedro S. and Reis, Hugo, Vocational High School Graduate Wage Gap: The Role of Cognitive Skills and Firms. IZA Discussion Paper No. 11549. Available at SSRN: https://ssrn.com/abstract=3193303

Joop Hartog (Contact Author)

University of Amsterdam - Faculty of Economics and Business (FEB) ( email )

Roetersstraat 11
Amsterdam, 1018 WB
Netherlands

Tinbergen Institute

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Pedro S. Raposo

Tilburg University - Center for Economic Research (CentER) ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Hugo Reis

Banco de Portugal ( email )

148, Rua do Comercio
Lisbon, P - 1101
Portugal

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