Vocational graduates enjoy a faster transition to work and are more likely to have a permanent first job finds research

The results indicate that VET is able to speed up the transition from education to work. Relative to medium-level general education graduates, VET graduates enjoy a faster transition to work, are more likely to have a permanent first job, and are less likely to find a first job with a qualification mismatch. These effects of VET are mostly persistent, as a similar (if slightly weaker) pattern of results applies to an individual’s current job.

In interpreting these results, it should be remembered that general education programmes tend to orient their graduates towards further education; they are more likely to continue studying, with lower participation in the labour market, particularly in the younger age groups. In contrast, VET graduates are more likely to participate in the labour market (whether employed or unemployed).

The report also shows that, in terms of labour market outcomes, there are substantial cross-country differences in the returns to VET. Young people in countries with strong VET systems, with a close connection between school and work-based components, are much more likely to be employed than their general education counterparts and to benefit from a faster transition to the labour market. Conversely, young adults in countries where the work-based component of VET is less developed experience a lower, yet generally present, VET employment premium and experience greater difficulties in labour market integration. Factoring in differences in national labour market institutions and policies suggests that success or failure of education programme orientation depends on a complex interaction between policies and institutions that are particular to each national context.

Chosen excerpts by Job Market Monitor