The safety net and the diversion effects of vocational upper-secondary education in European countries

Abstract

ABSTRACT This paper presents a comparative analysis of the effect of different educational orientations at the upper-secondary level on labour market outcomes across European countries. The study separates safety net effect and the diversion effect of Vocational Education and Training (VET). Using PIAAC data, we show cross-national differences in the early career advantages of vocational qualifications. The results indicate that vocational effects vary according to outcome. In general, negative effects on occupational status are consistent with earlier research. The safety net function of VET is only observable in a few countries. We also studied the impact of different institutional level characteristics. The analysis of the impact of macro-level characteristics reveals VET’s safety net effect is observable only in countries with the highest occupational specificity of VET. At the same time, work-based VET is increasing its diversion effect. Crucial issues are the differences in general competencies between graduates of VET and general upper-secondary school graduates. The major differences are the simultaneous weakening of VET’s safety net effect and the strengthening of the diversion effect.