Returns on vocational education over the life cycle: between immediate labour market preparation and lifelong employability

An important issue in the design of secondary-level education is the balance between conveying general and occupation-specific (vocational) skills. On the one hand, vocationally oriented programmes, providing occupation-specific skills with immediate labour market relevance, have repeatedly been shown to secure safe pathways into employment. On the other hand, these programmes tend to put less emphasis on developing general knowledge, skills and competencies, including numeracy and literacy, which are foundational to lifelong learning. Hence, when the needs of the labour market change, employees who opted for a vocational track when they were at secondary school risk being less flexible in adapting to such changes later in their career. The authors of this article examine whether this results in a trade-off between short-term gains and long-term losses by considering differences in the labour market careers of vocationally and generally educated respondents in the 2012 Programme for the International Assessment of Adult Competencies (PIAAC). Their results suggest that early labour market benefits of vocational specialisation decrease over time; the authors relate this to its lower ability to equip secondary school students – future employees – with skills for lifelong learning.status: publishe