Earnings over the life course: general versus vocational education

Two common hypotheses regarding the relative benefits of vocational versus general education are (1) that vocational skills enhance relative short-term earnings and (2) that general skills enhance relative long-term earnings. Empirical evidence for these hypotheses has remained limited. Based on Swedish registry data of individuals in short (two-year) upper secondary school programs, this study provides a first exploration of individuals' earnings across nearly complete careers. The descriptive earnings patterns indicate support for both hypotheses (1) and (2). The support holds when controlling for [grade point average] GPA and family fixed effects and also when taking into account enrolment in further education and fertility decisions.

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