Abstract
The paper analyzes the labor market outcomes of graduates of post-secondary technical and vocational education and training (TVET) in the Philippines. Based on human capital theory, our guiding assumption is that investment in education is rewarded through higher wages and a greater likelihood of being employed. Using household data for 2015–2016, the results show significantly higher wages for TVET graduates relative to those who entered the job market with a secondary school education or below. However, individuals who both trained in TVET and pursued tertiary (university) education tend to have a lower wage than those with secondary school education or below. This counterintuitive result is explained by the tendency for such dual-level individuals to complete the lowest level of TVET. Another result is that TVET graduates are more likely to be employed than both those who only studied at secondary school or below and those who studied at the tertiary level. The results are generated from a linear regression model that corrects for sample selection into employment and from the use of propensity score matching which addresses selection into TVET.
Highlights
Education allows people to secure employment and pursue an occupation
Other technical and vocational education and training (TVET) certificate holders earn the highest average wage, which is like those who studied for a professional bachelor’s or master’s degree. This Other TVET category consists of training that is recognized by the government or industry but is not part of the National Certificate (NC) system
There is a positive correlation between wages and TVET, relative to the base case, which is secondary school or below
Summary
Education allows people to secure employment and pursue an occupation It provides an “in” to the labor market and an opportunity to earn a decent wage or salary. For most people, employment is a key reason they expend time, effort, and money, on post-compulsory education at college or university It is possible, that education does not result in the intended labor market outcome. This quality check may be relevant for technical and vocational education and training (TVET) as it has an equal and possibly more direct intent to educate for the labor market than the university system.
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