Investing in Technical and Vocational Education and Training

Technical education and training has been dramatically expanding in Brazil recently. However, there remains no evidence on the cost effectiveness of this alternative track to a more general education. This paper quantifies the wage returns of completing technical and vocational education and training compared with the returns of completing the general education track, for individuals with similar observable characteristics. Exploring data from the Brazilian National Household Sample Survey, the paper profiles the students taking up this track and quantifies the impact of different types of technical and vocational education and training courses on individuals’ hourly wages. After controlling for selection on observables with propensity score matching, the analysis shows positive and statistically significant wage premiums for students completing technical school at the upper secondary level (on average 9.7 percent ) and for those completing short-term training courses (2.2 percent on average). The paper also documents significant heterogeneity of impacts depending on the courses and the profile of students. For realistic unitary costs of providing technical and vocational education and training, the evidence suggests technical education is a cost-effective modality. The courses offered by the publically financed and privately managed “Sistema S,” together with courses in the manufacturing area have the highest positive impacts.

Bibliographic Details

Main Authors:	Anazawa, Leandro, Almeida, Rita, Menezes Filho, Naercio, Vasconcellos, Ligia
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2015-04
Subjects:	SKILLS, STUDENT CHARACTERISTICS, TECHNOLOGY, TEACHING TECHNIQUES, PROFESSIONAL EDUCATION, VOCATIONAL TRAINING, VOCATIONAL COURSES, STUDY, FORMAL EDUCATION, ITS, TRAINING COURSES, STUDIES, RELIGIOUS INSTITUTIONS, COMPLETION, SKILLED WORKERS, VALUES, SCHOOLS, STATE SCHOOLS, GENERAL SECONDARY EDUCATION, PARTICIPATION, SCHOOLING, WORK STATUS, TUITION, ENROLLMENT, URBAN CENTERS, HIGHER LEVELS OF EDUCATION, GROUPS, AGE GROUP, LEVELS OF EDUCATION, OCCUPATIONS, AGE GROUPS, DEVELOPING COUNTRIES, FORMS OF EDUCATION, HEALTH CARE, SCHOOL GRADUATES, HIGHER EDUCATION, EDUCATION LEVEL, GENERAL EDUCATION, PAPERS, AGE OF ENTRANCE, TECHNICAL COLLEGES, TRAINING PROGRAMS, PUBLIC INSTITUTIONS, CURRICULUM, EDUCATION COURSES, EDUCATIONAL POLICY, COURSES, KNOWLEDGE, TECHNICAL TRAINING, LABOR MARKET, VOCATIONAL SCHOOLS, LEVEL OF EDUCATION, EDUCATION, MATHEMATICS, INVESTMENT, PER CAPITA INCOME, STATISTICS, TRAINING, RATES OF RETURN, TESTS, TYPES OF EDUCATION, VOCATIONAL SCHOOL, SECONDARY VOCATIONAL EDUCATION, SECONDARY SCHOOL, PUBLIC SCHOOL, STUDENTS, SECONDARY LEVEL, WORKING HOURS, TECHNICAL EDUCATION, RETRAINING, VOCATIONAL EDUCATION, GRADUATES, EDUCATION SYSTEM, WOMEN, JOB TRAINING, AVERAGE EDUCATION LEVEL, CONTINUING EDUCATION, PRIMARY SCHOOL, SCHOOL, TEACHING, SECONDARY EDUCATION, TERTIARY EDUCATION,
Online Access:	http://documents.worldbank.org/curated/en/2015/04/24411547/investing-technical-vocational-education-training-yield-large-economic-returns-brazil https://hdl.handle.net/10986/21861
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