2. VOCATIONAL AND ACADEMIC SCHOOLS: COMPARISON OF LABOR MARKET ..... quantity.7 / In the early years, the task of the vocational schools had been.
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WORKING L3Education
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VocationalSecondary Schooling in Israel: A Study of Labor MarketOutcomes
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AdrianZiderman
Most economistsconsidervocationaleducationto be socially inefficient. Israel may prove them wrong - particularlyfor studentswhoseoccupationsare relatedto theircourseof study.
nd to the findmgs of wwki& gs The Policy, Planning, and Resa hConplexbdistdhutwPPR Wa ng Papas todisste ry the nam s of thecxchange o idea among Dankstaff and all othen inteac mn devioiopm iaises Tbheapapn enaage arethe the authos, reflectonly their views, and should be used and cited accordingly.The findings. indtpretions, andcdlusios autboxeown. Tley should not be amibuied to theWorld Bank. its Boardof Directos. its managemnt. or ny of its manberconnties.
Polac,Pnning, and Research
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EducationandEmployment|
Israel is a fitting placf to compare the outcomes of academic and vocational schooling. More than half the Israeli secondary school pupils attend vocational schools or vocational streams in comprehensive schools. A study based on 1983 Israeli census data shows vocational schooling to be more costeffective than general academic education. In particular, vocational school completers who work in occupations related to their course of study earn about 10 percent more a year than their counterparts who either attended secondary
schools or who attended vocational schools but were employed in occupations unrelated to their course of study. Studies that show vocational schooling to be cost-ineffective compared with academic schools tend to concentrate on earnings, without taking into account such variables as the relevance of the type of occupation to the vocational studies pursued. Future evaluation studies should pay more attention not only to that variable but to issues of curriculum (including the type and scope of vocational studies).
This paper is a product of the Education and Employment Division, Population and Human Resources Department. Copies are availablefree from the World Bank, 1818 H Street NW, Washington DC 20433. Please contact Cynthia Cristobal, room S6035, extension 33640.
The PPRWorkingPaperSeriesdisseminatesthe findingsof workunderway in the Bank'sPolicy,Planning,and Research Complex.An objectiveof theseriesis to get thesefmdingsout quickly,evenif presentationsare lessthan fullypolished. The findings,interpretations,andconclusionsin thesepapersdo notnecessarilyrepresentofficialpolicyof the Bank. Producedat the PPRDisseminationCenter
VOCATIONALSECONDARY SCHOOLINGIN ISRAEL: A Study of Labor Market Outcomes
Summary and Implications
This paper outcomes)
examines
the efficacy
(in terms of labor
market
of vocationalschool education in relation to that of the
academic secondaryschool; the focus is on non-postsecondaryschool attenders. Given the relativelysmall fractionof youth that attend, and complete, tertiaryeducation in developingcountries,the secondaryschool completerpopulationthat does not continueinto tertiaryeducation,plays an importantrole in economicdevelopment. Since vocationalschoolingin Israel is sizeable - with over half of Israeli secondaryschool pupils attendingvocationalschools or vocationalstreams in comprehensive schools, it is quantitativelyfar more importantthan in most other countries - the Israeli setting seems to be a fitting one for a case study comparing the outcomes of academicand vocationalschooling.
Using data from the 1983 populationcensus, the study shows vocational schoolingto be more cost-effectivethan general academic education. In particular,those vocationalschool completersthat work in occupationsrelated to the course of study pursued at school earn more (by up to about 10 percent annually)than their counterpartsthat attended general secondaryschools or those from vocationalschools employed in non course related occupacions.
These results are at odds with the predominantlyheld view (of economists)that vocationalschoolingis a socially inefficientform of education,particularlyin relationto traditionalacademicschools. Most follow-upevaluationstudies show vocationalschools to be cost-ineffective comparedwith academicschools. However, the present paper shows the importanceof broadeningthe scope of these evaluationstudies, particularlyin relationto labor market outcomes. Too often such studies concentrateon earnings,without taking into account such intervening variables as type of occupationand its relevanceto vocationalstudies pursued. In this case study, we have seen that such considerationsare central to a proper underst.ndingto the labor market outcomesof vocationalschooling. Future evaluationstudieswill need to pay more attention to issues of curriculum(includingthe type and scope of vocationalstudies),as well as to the nature of the occupationfollowed and its relationshipwith prior courses of study pursued.
-
ii
-
Acknowledgements I am indebtedto Dr. ShoshanaNeuman of Bar Ilan University, Israel and Consultantto the World Bank, who processed the data and ran the regressionsfor this study. Helpful commentson a first draft of this paner were providedby ProfessorAvril V. Adams of George WashingtonUniversityand by Elizabeth King, my colleagueat the World Bank. Thanks are offered to tie followingIsraeli officials for assistance,advice and hospitality,generouslyextended,on my recent Bank mission in connectionwith this study: Ministry of Labor and Social Welfare: David Katz, Director Manpower PlanningAuthority Eli Paz, Director ManpowerTraining and DevelopmentBureau Benny Levinson,Head of PedagogicDepartment ManpowerTraining and DevelopmentBureau Yizhak Kroner, Head of Apprenticeship and Youth Department Manpower Trainingand DevelopmentBureau Minis ry of Educationand Culture: Uri Tsuk, Director Technical and VocationalEducation Department Ehud Bar, Deputy Director PlanningDepartment The author, alone, is responsiblefor what is written in this paper.
-
iii
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CONTENTS
1.
VOCATIONAL SCHOOLING IN ISRAEL ..... .... . . . . . . . . . . . . . . . . . . . Introduction Size, growth and structure of the vocational schooling system . . .
2.
VOCATIONAL AND ACADEMIC SCHOOLS: COMPARISON OF LABOR MARKET OUTCOUES Data .... . . . . . . . .... . . . Methodology .... Regression results . . Age cohort analysis Training costs .... . .
3.
1 4
13 14 19 21
. Education-occupation matchings ... . . . . . . . . . . . . . . . Earnings functions . . . . . . . . . . . . . . . . . . . . . . . . . Costs and benefits of vocational schooling . . . . . . . . . . . . .
26 29 38
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41
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9
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. . . . .
VOCATIONAL EDUCATION, OCCUPATIONAL CHOICE AND EARNINGS
4.
VOCATIONAL EDUCATION AND NON-FORMAL TRAINING ALTERNATIVES
5.
SUMMARY AND CONCLUSIONS
....
. . . . . . . . . . . . . . . . .
REFERENCES APPENDIX:
Matching of Vocational Education Course with Occupation
-
iv
-
.
46
1. Vocational Schooling in Israel
Introduction:
Since the publicationof Foster'snow classic paper on the vocationalschooling fallacy (Foster,1966), the appropriaterole to be accordedto vocationaleducationwithin both the schoolingand the training systems has been an issue of serious,even intense,debate. The protagonistsin this debate have been defined largely along disciplinary lines: educationaleconomistshave been in the forefrontof those pressing the offensive,while educationalpolicy makers and administrators, particularlyin developingcountries,have continued to argue, often on the basis of perceived labor market needs, that vocationaleducation should remain a central element in national educationalpolicies.
Meanwhile,availableevidence suggeststhat vocationalschooling, round the world, is in retreat.Benavot (1983), on the basis of published UNESCO statistics,has pointed to a world-widesecular decline since the 1950s in the proportionof secondaryschool pupils
attendingvocational
schools'l/while a recent survey of World Bank lending for vocationallyspecific educationand traininghas shown a clear and significantshift over the past two decades away from vocationalsecondaryschool projects towards various forms of non-formaltraining (Middleton,1988). Moreover, a growing case study literaturehas tended to argue that, in comparisonwith the 1 These conclusionsmay need to be modified in the light of a new study near completionand based on more recent UNESCO data than those employedby Benavot.This shows, for more recent years, a tendencyfor the vocationalschool enrollmentproportionto increase. See Komenan and Ziderman, forthcoming.
tradItionalacademic secondaryschool,vocationalschools are simply not 2/ cost effective.
Similarly,a number of studieshave shown vocational
schools to be a high cost form of trainingfor the skilled trades, in relation to alternativemore closely job-based trainingmodes, such as the 3/ traditionalapprenticeship.
So the place of vocationalschoolingwithin
both the schooling and trainingsystems is under attack.
We present this case study appraisingthe economicoutcomes of vocationalsecondary schoolswithin this context. It is felt that an examinationof the Israel experience,where so much relative importancehas been accorded to vocationalschooling,should be of interest,both in its own right and also in adding to the roster of case studies round the world, on these issues. In Israel well over half of all secondaryschool pupils (and over 40 per cent of all youth of secondaryschool age) attend vocationalsecondaryschools.Outside of the East Europeancounties,where national economicplanning dictatesthat the educationalsystem at the secondary level is dominatedby vocationalschools, only a handful of 4/ countries exhibit as large a vocationalsecondaryschool sector.
Moreover, the proportionof secondaryschool pupils attendingvocational schools has shown a secular, and continuing,rise over time, thus departing from comparativeinternationalnorms (Benavot,1983). 2 This literaturehas been reviewed in Zymelman (1976), Psacharopoulos (1987) and Tilak (1988). Two recent World Bank studies of vocational education in Peru (Moock and Bellew, 1988) and the Ivory Coast (Grootaert, 1988) are confirmatoryof these results. 3
For a discussion,see Metcalf (1985).
4 This small group of countriesincludesBelgium and the Netherlands,Argentina,and El Salvador:see UNESCO year book. -2-
schools has shown a secular,and continuing,rise over time, thus departing from comparitiveinternationalnorms (Benavot,1983).
Israel is a country with many unique institutionsand social achievements.Over the forty years since independence,the challengesof a fivefold increase in population,of the absorbtionof large-scalewaves of immigrationfrom varied culturalenvironmentsand of externalsecurity,have all found responses in, and have been facilitatedby, institutionalchange and the fashioningof a technologicallyvibrant society.These dramatic changes that have ensued over recent decadeshave rendered Israel a productiveframeworkfor socio-economicresearch:this is particularlythe case with the education sector.
Educationhas played a central role as a facilitatorof change. At the outset of statehood,the educationalattainmentlevel of the Jewish population in Israel was amongst the highest in the world, second only to the United States. Richard Easterlin,writing in the early 1960s, has ascribed a major role to the richnessof the country'shuman capital resources in explainingIsrael'ssuccess in physicallyabsorbing the particularlyheavy immigrationin the early years of statehood (Easterlin, 1961). Social and cultural integrationwas less easily accomplishe4.Mass immigration,particularlyof lower educatedmigrants from North Africa and Asia, of relativelylow socio-economicstatus, led to a considerable dilution in the educationattainmentsof the population.The subsequent expansion of the educationalsystem, and the particularform and directions it took, can only be understoodin the context of the overridingsocial goal -3 -
of integratingthe various ethnic groups and, in particular,that of closing the socio-economicgap between those of Western origin and the more recent immigrant groups from North Africa and Asia (which now constitutethe majority of the population).
In this paper, as we have noted, our focus is on secondary school vocationaleducation.We present an appraisalof cutcomes, in relation to educationalalternatives,for that age group - both of the more traditional academic secondaryschools (henceforth"academic"schools)and also informal training systems more closely linked to the world of work. Our approach is an economicone, adopting the now traditionalhuman capital model to appraiseoutcomes, in terms of labor market success,as measuredby earnings. Yet in interpretingthe results presented,it will be important to adopt a broad perspective,since vocationaleducation in Israel as in many other countries,serves importantsocial as well as manpowergoals.
Size, growth and structureof the vocationalschoolingsystem:
Althoughvocationalschooling in Israel has a long history - the first vocationalschool was set up over a century ago -
most secondary
schooling in Israel at the time of independencein 1948, was of the traditional,academickind, with less than a fifth of all secondary school pupils enrolled in vocationalschools;a similar ratio persisted for the next fifteen years. Subsequently,the developmentof vocational schooling was rapid: it constitutedsome 38 percent of secondaryschool pupils by 1970, and by the end of that decade had exceeded the 50 per cent mark. -4 -
Table 1 reviews the main developmentof vocationalschoolingsince 1948, in terms of numbers of schools and pupils.5 /
This rise in the relativeimportanceof vocationalschools in Israel, and (as will be shown) its changingstructure,must be viewed against the backgroundof the dilemma facing the authoritiesin the early years. The central issue was: how to integrateinto the dominant framework of society the large numbers of y. '-of Orientalorigin (stemmingfrom with low academicability and North Africa, the Middle East ant;;..men) socio-economicstatus, yet at the same time both maintainingthe academic standards of the general secondaryschool system and meeting the country's needs for high level technicalmanpower,as dictatedby imperativesof defense and the developmentof the economy? No major role was accordedto apprenticeshipor educationand trainingwith a strong job market orientation.Both the need for a unifying, integratingframeworkas well as Jewish culturalnorms establishedover the centuries,required that the dilemma be resolvedwithin the frameworkof the full-timeschoolingsystem,
S Columns 1 and 2 in the table contain some double counting in the case of comprehensiveschools,containingboth general and vocational r-reams;each stream is entered as a separate"school",to indicatethe mcent of the two forms of study. In 1986/87,there was a total of 516 schools,of which 173 (a third) were comprehensive(multi-stream)schools. With the aim of facilitatingsocial integrationas well as building a parity of esteem between the more elitist general and the lower status vocational sub-sectors,comprehensiveschools along the lines of the British model have become an increasinglyprominent feature of the secondaryschoolingsystem in Israel, with over 43 per cent of secondaryschool pupils now attending comprehensiveschools. -5-
Table 1
General. Vocational and Agricultural Secondary Schooling: Comoarative Statistics
Year
Number of Schools General Vocational Agricultural
Number of Students General Vocational Agricultural
-
1948/49
39
26
-
7,168
2,002
1959/60
113
60
30
32,894
10,167
5,016
1969/70
219
258
30
63,731
49,556
7,641
1970/71
210
265
30
59,207
53,847
7,462
1971/72
208
288
29
54,908
60,039
7,189
1972/73
210
297
29
54,903
63,778
6,683
1973/74
212
302
28
54,064
64,068
6,464
1974/75
217
307
27
57,408
64,648
5,877
1975/76
222
317
27
56,519
65,677
5,655
1976/77
224
315
27
56,796
66,307
5,371
1977/78
225
317
28
57,199
66,613
5,620
1978/79
210
310
27
57,499
67,720
5,460
1979/80
231
310
27
61,581
70,681
5,108
1980/81
246
313
27
63,990
73,785
4,704
1981/82
246
304
27
66,155
76,361
4,284
1982/83
267
301
26
70,310
76,636
4,970
1983/84
278
305
26
74,704
79,957
4,692
1984/85
292
305
26
73,213
84,631
4,648
1985/86
306
306
26
83,933
89,385
5,104
1986/87
305
308
26
86,813
91,720
4,683
-6-
itself.6 /
Indeed, the educationalsystem soon became the main framework for
social and cultural integration.
Since the traditional,academiccurriculumof the general secondary schools,with its orientationtowards entry to tertiaryeducation was inappropriatefor the large numbers of youth of Oriental and low socioeconomicbackground,the more practicallyorientatedvocationalschools expandedat a faster pace, parallelwith the growth in populationand with the increasingproportionof 14-17 years old (especiallyof Orientalorigin) staying on at school. Impetuswas added to the expansionof vocational schools by the enactment in 1969-70 of compulsoryeducationfor youth aged 14 and 15, and of free secondary schooling,and more directlywith the transferof control of the system from under the aegis of the Ministry of Labor to that of the EducationMinistry (and its reorganizationwithin a VocationalEducationDepartment).
The transferof vocationaleducationto the Ministry of Education in the early 1960s had a serious impact on its content,as well as the 7/ quantity.
In the early years, the task of the vocationalschoolshad been
clearly defined as preparingyouth for employmentin the labor market in the manual trades,with the emphasis in the curriculumon practi._-.i instruction. 6 For a fuller discussion of these issues, Kahane and Starr (1976) and Iram (1986).
the reader
is referred
to
7 The Ministry of Labor was left with residualresponsibilityonly for those disadvantagedyouth on the margin which, unable to be absorbedwithin existingsecondary schools,were accommodatedin nonformal trainingsystems carrying low social status; these (to be discussed later) includedformal apprenticpshipsand factorybased industrialschools. -7 -
It representedmore of a trainingthan an educationalsystem. With the transfer,more theoreticaland academicsubjectswere introduced,and by the mid 1960s in response to the call, emanating from industryand the army, for a more technologicallyorientedlabor force, such specialtiesas electronics and electricitywere given a more central role. This process of broadening and upgrading the curriculumwas facilitatedby the introductionin 1969/70 of the vocational "tracks",which now characterizethe vocationalschooling system.
Three main tracks were introduced,each leading to appropriate trade diplomas. The highest (masmat)track leads to matriculation(the Bagrut examination)and entry to higher education.There are two nonmatriculationtracks, the regular and the practical (masmam)track; these more closely conform to the traditionaltrainingrole. However, today nearly sixty per cent of vocationalschool pupils study in the masmat track, comparedwith only a third in the mid 1970s. It is normal practice for masmat studentsto present themselvesfor the Bagrut examinations, particularyfor the technologicalspecializationintroducedtowards the end of the 1970s (over 70 per cent now do so, a dramatic change from the situation in the early 1970s when this was rather exceptional).The regular track has shown a steady decline in enrollment,from about a half of all vocationalschool pupils fifteenyears ago to less than a third today, while the masmam track (comparablewith trainingmodes offered by the Ministry of Labor, to be discussed in Section 4) accountsfor some 15 per cent of the total.
-8-
The foregoingdiscussionhas argued that the vocationalschool syscem in Israel is far broader in scope and aim than is typicallythe case in many other countries.It is the country'smain vehicle for technologicallyoriented educationand for the achievementof national policies of integrationof diverse ethnic groups and equalityof opportunity through universal secondaryeducation.The trainingof skilledworkers for the manual trades, historicallyits major role, while still significant today, does not now constituteits ma1..r focus.
2. Vocationaland Academic Schools:Compar.sonof Labor Market Jutcomes
The major concern of this section is to compare the labor market (earnings)outcomes of the two major alternativeforms of secondary schooling in Israel. Have those who attendedvocationalsecondaryschools achievedhigher earnings than those attendingacademic secondaryschools? Have any such earnings differencescontinued to hold over the longer term? We look at these issues using relevantdata drawn from the 20 percent sub 8/ sample of the 1983 Census of Populationand Housing.
Data:
The Census of Population20 percent sub-samplequestionnaire collected informationon level and type of terminalschooling. This made it possible to identifytwo broad groups of individualsthat are the focus of
8 A fuller account of sources and method is given in Neuman and Ziderman, 1988A. -9-
this paper: those who terminatededucationat a vocationalsecondaryand at 9/ an academic secondaryschool, respectively.
For secondary school
completersthat went on to post-secondaryeducation,it was not possible to identify type of secondary school attended;they are not included in the present analysis.
Only individualsin the 25-49 age group at the time of the Census are included in this research. The upper age limit was set in order to exclude individualswho had attended secondaryschool before 1948, the year of statehood;the lower, to allow at least three years possible labor market experience,following3 year compulsorymilitary service at age 18. Since our concern is with the Israeli educationsystem, we excluded (on the basis of age and year of migration)the large number of immigrantswho had attended school abroad. Finally,the present study relates only to male full-timeworkers (a worker is considered"full-time"if he worked at least 35 hours in the week prior to the Census). In all, some 16000 individuals were included in the sample, nearly 11000 vocationalschool completersand some 5000 individualswho had completeda general secondaryschool; the number of observationsin the regressionsthat follow is somewhat smaller, however,because of missing values.
9 In fact, individualsthat had concludedother forms of vocational trainingfor youth, notably the formal apprenticeshipand industrial schools,were also includedwithin the category of vocationalschool completers;also includedwere those that attended agriculturalsecondary schools. However these groups constitutea small, and declining,proportion of vocationallyeducatedstudents. -
10
-
Table 2 presentscharacteristicsof the sample of secondary school completersas a whole, as well as of each group (completersof vocational and of academicschools) separately. It appears that personal characteristics(age, years of schooling,experienceand ethnic origin) are quite similar for both groups. The two groups do differ by level of school certificationattained,particularlywith regard to matriculation(the Bagrut),which leads to entry into higher education: nearly 29 percent general school completersobtained the highest level of certification, comparedwith only 7 percent for the vocationalschool group.
Thpre are no significantdifferencesbetween the two groups in the percentagenot participatingin the labor force (a little over 10 percent). There are, however, some differencesbetween the two groups in terms of the distributionof employ
t by economicsector and by occupation.For both
groups, Industry is the leading sector, followedby the Public sector; vocational school completersare very much under-representedin the Finance sector. Skilled work is the main occupation,followedby Clericalwork, for both groups; the former assumes greater relative importancefor vocational school completers,and the latter for those of academicschools.Relatively more academic school graduatesenter managerialoccupations.
- 11
-
Table 2
CQia>eri-t4cs
of SMIxe m lMMeof S&gxaxularSdhMolAflmle
Listof Variables
WholeSamile Value Standbard Deviation
Vocational Schools Value Standard Deviation
Geraral Schcols Value Standard Deviation
MeanMonthly IncomeSh.kel)
38,188
30,175
37,396
27,129
40,083
36,376
MeanYearsof Schoolirg
11.185
1.045
11.122
1.033
11.336
1.058
MeanYearsof Experience
16.582
6.708
16.057
6.367
17.833
7.309
MmanAge
33.767
6.584
33.179
6.245
35.169
7.138
MeanWeeksWorkedLastYear
50.164
6.888
50.192
6.771
50.099
7.161
MeanHbLrs Worked LastWeek
49.718
7.858
49.733
7.782
49.682
8.038
Percentage of Oriental Origin
56.850
58.277
53.455
6.264 19.166
6.205 19.320
6.404 18.797
61.222 13.348
67.606 6.869
45.995 28.804
35.340 2.841 11.392 7.860 11.392 17.361 4.344 6.336 3.134
38.926 3.297 10.757 5.164 11.472 15.911 4.868 6.573 3.032
26.784 1.753 12.905 14.293 11.200 20.818 3.092 5.771 3.384
0.518
0.459
0.657
8.163 8.508 16.260 7.386 6.846 48.385 2.459 1.475
8.369 6.879 12.166 6.675 6.471 55.042 2.480 1.459
7.670 12.393 26.029 9.082 7.743 32.505 2.411 1.510
15,846
10,800
School Certification Attained (%) No certificate attained Primary or intermdiate levelccnpletion Secondary level completion Matriculation (Bagrut) Economic Sector(%) Irdustry Electricity comerce Finance Transportation Public Services Private Services Cbnstruction Agriculture Occupation (%) Scientific & Academic Workers Professional & Technical Workers Managers Clerical Workers SalesWorkers Service Workers Skilled Workers Unskilled Workers Agricultural Workers Sample Size
-
12
-
5,046
Methodology:
Earnings functionsof the traditionalMincer type are estimated 0/ for the sample of secondary school completers.1
The log of monthly
earnings is run against a dummy variable (VOC) describingtype of school attended, either vocational(-1) or academic (-0). We hold constant a series of explanatoryvariables relating to other dimensionsof education received, to various personalbackgroundcharacteristics,and to aspects of labor market involvement. A positive, and significant,coefficienton the VOC variable would indicate that completersof vocationalsecondary schools earned more, on average, than their academicsecondaryschool counterparts.
The full set of variables employedin the regressionsare as follows:
Schoolingvariables: YRS.SCH: years of schooling (rangingfrom 8 to 12 years) VOC:
a dummy variable indicatingtype of school attended (vocationalsecondaryschool-1,academicO)
A series of dummy variables,P.CERT, S.CERT and BAG, relating to the highest level of school certificationattained - completed primary or intermediatelevel, completed secondaryschooling,and gained Bagrut (matriculation), respectively. The category, "no certificateobtained" enters the constantterm. 10 On specificationand estimationof earning functionssee Dougherty and Jimenez, 1987. - 13 -
A series of dummy variablesrelating to occupation:ACAD (scientificand academicworkers),TECH (other professionaland technical workers), MANAG (managers),CLER (clericalworkers), SALES (sales workers), SERV (serviceworkers), SKILL (skilledworkers),UNSKIL (unskilledworkers), with agriculturalworkers in the constantterm. Personal backgroundvariable: ETHNI:
a dummy indicatingethnic origin (Oriental=1,Western=O)
Work related variables: EXP:
years of work experience(definedas Age-SCH-6)
WEEKS:
log of number of weeks worked in the past year
HOURS:
log of hours worked in the past week11 /
A series of dummy variables relating to sector in which employed: Industry (IND), Electricity(ELECT),Construction(CONST),Commerce (COMM), Transport (TRANS),Public services (PUB), Private services (PRIV),with Agriculture in the constantterm.
Regressionresults:
Regression runs relating to the whole sample are provided in Table 3. Regressions (1) and (2) follow closely the now classical formulationof
11 The reason for taking the natural logarithmof the weeks and hours variables is that they are highly skewed to the left (most workers working 45 hours a week and 52 weeks a year). By taking the log, the dist ibution becomes more symmetric. -
14 -
Table 3 Full
Regressions of Monthly Earnings (In) Time. Male. Salaried Workers - Israeli Census. (n-13879) (1)
Coefficient YRS.SCH EXP EXP2 EXP*YRS.SCH WEEKS (in) HOURS (In) ETHNIC
1983
(2)
tstatistic
Coefficient
(3) tstatistic
tCoefficient statistic
0.041 0.036 -0.0008 0.001 0.317 0.297 -0.135
3.18 3.77 7.45 1.48 16.80 9.13 14.09
0.020 0.036 -0.0008 0.001 0.314 0.301 -0.130
1.53 3.69 7.40 1.62 16.66 9.25 13.49
0.003 0.029 -0.0007 0.001 0.314 0.300 -0.128
0.22 2.93 7.01 1.99 16.67 9.24 13.23
0.075 0.267 -0.028 0.137 0.073 -0.029 -0.055 -0.006
2.60 6.73 0.88 4.07 2.27 0.92 1.54 0.18
0.075 0.267 -0.026 0.131 0.072 -0.029 -0.055 -0.003
2.51 6.73 0.82 3.88 2.26 0.92 1.53 0.08
0.076 0.268 -0.026 0.132 0.073 -0.028 -0.054 0.001
2.53 6.75 0.82 3.91 2.29 0.90 1.50 0.05
0.255 0.372 0.051 0.194 0.196 0.183 0.099 0.177
3.32 8.24 11.12 4.43 4.25 3.97 1.92 4.13
0.253 0.369 0.496 0.194 0.195 0.186 0.102 0.180
3.30 8.18 11.03 4.43 4.22 4.04 1.98 4.20
0.253 0.368 0.497 0.194 0.195 0.186 0.102 0.180
3.30 8.16 11.03 4.43 4.24 4.04 1.99 4.19
--
0.0005
0.02
0.0003
0.01
0.071
3.55
0.071
3.57
--
0.122
5.01
0.122
5.01
2.42
Economic Sector: IND ELECT COMM FINAN TRANS PUB PRIV CONST Occupation: ACAD TECH MANAG CLER SALES SERV UNSKILL SKILL Certification: P.CERT
--
S.CERT BAG
--
0.020
1.93
0.026
-0.217
1.78
VOC*YRS.SCH VOC*EXP
---
--
---
---
0.016 0.003
1.67 2.07
Intercept R2
6.794 0.166
30.97
6.949 0.169
31.46
7.183 0.169
29.13
VOC
--
-
15 -
Mincer (1974) with an additionalinteractionterm EXP*YRS.SCHwhich takes account of the possibilityof increasing(or diminishing)returns to schoolingas experienceadvances.12/
The regressionsgive results generally in line with those from similar earnings functions for other countries.
Focussing,at first, on regression(1), monthly earningsare seen to be stronglv, and positively,related to years of schoolingand of experience,though the negative coefficienton experiencesquared shows that earningsdecline for additionalhigher levels ox experience. The coefficienton YRS.SGH, under certain assumptions(see Mincer, 1974), can be interpretedas a measure of the annual rate of return accruing to individualsfor each extra year attendedat secondaryschool - in this case, a little over 4.C per-cent. (The coefficientof EXP*YRS.SCHis insignificant.) Individualsof Western origin earn more, on average,than those of Orientalbackground;the coefficientson the other control variables also do not occasion surprise. The significanceon the VOC variable points to an earnings advantageaccruingto those that chose to study at vocational, rather than academicsecondaryschools; the former earn, on average, some 2% more per month.
12 If this variable appears to be significant,we should add up its coefficientmultipliedby the average number of years of experienceto the schooling coefficientin order to receive the whole effect of schooling. Similarly - in order to have the effect of experiencewe should add its coefficient,multipliedby the average number of years of schooling,to the experiencecoefficient(the resultswouAd be valid for the means' points). 16
-
To the extent that those who complete a course of study and gain a certificateare more able than those who do not (given years of schooling) the lower level of certificationamongst vocationalschool completers (as indicatedin Table 2) could bias the results against vocationalschools. To correct this, we add dummy variables representing,and thus holding constant, level of certificationattainedand indirectlycorrectingfor 13/ differentialability.
The results are presented in regression(2). The
variables S.CERT and BAG are positiveand highly significant. As expected, the effect is to lower (by over a half) the coefficienton YRS.SCH (and thus lowers measured rates of return on years of schooling). The level of significanceof VOC is raised, while the coefficienton YRS.SCH is now insignificant.
We took account of the possibilitythat certificationmay exert a differentialeffect, according to type of schooling. A Bagrut (matriculation)certificateobtained from a traditionalacademic secondary school may be regarded as of more value than one from a vocationalschool; similarly,a secondary school completioncertificatefrom vocationalschool is, supposedly,more job-orientedand may have greatermarket value than one from an academic school. To test this, we may introducethe interaction terms: VOC*P.CERT,VOC*S.CERTand VOC*BAG. The interpretationof a negative coefficienton the latter term, for example, is that the holder of a Bagrut certificate,on average,earns less if he attendeda vocationalschool.
13 A positive coefficienton the certificationvariables coull also be interpretedas an indicatorof credentialism,whereby educational certificates,as such, confer earningsbenefits additionalto those stemming from years of education. - 17 -
However, since all these interactionterms were non-significantin some earlier regressionruns, indicatingthat there is no differentialeffect of certificationaccording to type of school attended, it was decided not to include them in the reportedregressionresults.
Interactionterms were added to exam'ne for any differential effects on earnings according to type of school attended,within the various economic sectors and occupationalgroups. Again, since all of these additionalinteractionterms proved to be insignificant,and the other coefficientswere in line with those shown in regression(2), we do not include these regressionresults in the table.
In regression (3) we take account of the possibilitythat both human capital variables - YRS.SCH and EXP - may exert a differentialeffect, according to type of schooling. As vocationalsecondaryschoolk are more job oriented, it is possible that each year of vocationalschooling (where more technicalskills were received)and each additionalyear of experience (duringwhich these skills are put to use) may have more impact on productivityand, hence, on earnings. To test for this, we introducein regression(3) two additionalinteractionterms: VOC*YRS.SCH and VOC*EXP. The regression(3) results suggest that the effect of years of experienceon earnings is stronger for vocationalschools completers,althoughby only an additional0.3% above the return of 2.9% on a year of experiencefor academic schools completers. The impact of schoolingis significantly stronger for vocational schools completersonly at a significancelevel of 0.10 per-cent. The overall conclusionis that for those who attended - 18 -
vocational schools,human capital traits do have additional,though limited, market value.14/
Age cohort analysis:
Thus far, our attentionhas been focussedon the sample as a whole: the questionarises whether these results are equally valid for all age groups included in the sample, ranging from age 25-49. To test whether the relative impact of type of schoolingdiffers with age group, separate regressionsare run for five-yearlyage groups. The specificationof these age-cohortregressionsconformsto that of regression(2) in Table 3, except that the experienceterms are omitted, since the intra-cohortexperience will not differ greatly.
In order to target the exposition,we present in Table 4 selected results only, relating to the coefficientsfor the variableson which this study focuses:VOC and level of certification.(The fuil regressionresults are available on request).VOC now appears as significantlypositive only for the older age groups 35-39 and 45-49; for the younger age cohorts (up to age 35) the coefficienton the VOC variable is not significant, indicatingno earningsdifferences,on average,between vocationaland academicsecondary school completers.This latter finding is of some importance,since the labor market experienceof the younger age groups is
14 There is another empiricalresult worth noting: when introducing VOC*YRS.SCHand VOC*EXP, in regression(3), VOC loses its significance. This means that the whole positiveeffect of vocationalschools on earnings runs through the differentialeffects of the human capital dimensions. -
19
-
Table 4 Regressionsof Monthly Earnings (ln).by Age Group. SelectedCoefficients: Full TiMe. Male. SalariedUorkers Coopletersof General & VocationalSchools-IsraeliCensus. 1983
Age Group: 25-29
Age Group: 30-34
Age Group: 35-39
Age Group: 40-44
Age Group: 45-49
P.CERT
-0.00 (0.20)
0.032 (0.73)
0.037 (0.77)
-0.132 (0.193)
0.001 (0.01)
S.CERT
0.088 (2.64)
0.057 (1.40)
0.120 (2.65)
-0.055 (0.85)
0.066 (1.11)
BAG
0.172 (4.35)
0.102 (2.06)
0.142 (2.45)
0.024 (0.31)
0.106 (1.43)
VOC
0.002 (0.10)
-0.006 (0.25)
0.046 (1.92)
0.021 (0.64)
0.072 (2.20)
N
4,500
3,776
2,778
1,492
1,333
R2
0.083
0.096
0.145
0.186
0.193
t values
in parentheses
-
20
-
perhaps more relevant than that of the older ones (who will have completed secondaryschooling some decades ago). The schoolingof the former more closely conforms to current practice, in terms of curriculum,objectivesand overall educationaleffectiveness.
Of some interest, though not directlygermane to our main theme, is the results for the certificationdummies:only for the younger groups are some of these certificationterms positiveand tend towards significance. Taken at its face value, this latter result suggests that in the past the acquisitionof a diploma,as such, for those terminating education at the secondaryschool level did not lead to higher earnings; however, the possessionof a "more recent" diploma does augment earnings, over and above the earnings increaseresultingfrom additionalyears of secondaryschooling. Seemingly credentialism,absent in the past, may now be coming evident in Israel, a result supportiveof earlierwork on this issue for Israel (see Katz and Ziderman,1980). Moreover, the lack of significanceon the VOC-certificationinteractionterms in additional regressions (these results are not reported in the table), indicatesthe absence of any differentialcredentialismeffect by type of school attended.
Training costs:
Overall the foregoingregressionresults suggest that the earnings of individualsterminatingformal educationat a vocationalsecondary school do not differ from (and clearly do not fall short of) the earnings of academic secondaryschool completers. This result, indicatingsimilar
-
21
-
economic outcomes for the two types of schooling,does not necessarilyimply a clean bill of health for vocationalschools.At issue is not the comparativeeconomic outcomesof vocationaland academic schools as such, but rather these outcomes in relation to costs.
While reliable informationon the costs of secondaryvocational and academicschooling in Israel is lacking,a preliminaryattempt at measuring comparativecosts is made in Table 5. Based upon official estimatesof national expenditureon academicsecondary schools and on vocationaland agriculturalschools,respectively,the table shows the proportionaldifferentialof nationalexpenditureper pupil in vocational over academicschools (Column5). Only for the first two budget years of availabledata (1969/70and 1970/71) is this proportionlarger than unity indicatinghigher per studentvocationalschool costs; henceforthit is generallynegative. This indicatesthat vocationaleducation (on average, though not necessarilyin particularsubjects,such as electronics)is the less expensive - for recent years, by over 10 per-cent and for the most recent year (1984/85)by about a quarter. In 1982/83, the year correspondingto the Census,vocationalschoolswere 8 percent cheaper.
These result may occasion some surprise.Available international evidence shows a cost advantageto academic schools.In Israel, too, the view is widely held that such factors as higher equipment costs and smaller class size in vocation_1 schools (23.4 pupils
per class comparedwith 31.9
in general schools, in 1986/87)place such schools at a cost (per pupil) disadvantageof up to a third, comparedwith general schools.Against this,
-
22 -
Toble5 National Expenditure Ber Stumiat. Vocational ardAcademic Seornglay Schoos
National EPmerditure
National
Maxerditure
per Stuxent Year
Academic Swools 1
Vocational Schools 2
Academic Schools 3
1969/70 115 1970/71 125 1971/72 201 1972/73 268 1973/74 365 1974/75 466 1975/76 588 1976/77 861 1977/78 136 1978/79 224 1979/80 474 1980/81 1143 1981/82 2862 1982/83 6447 1983/84 18,892 1984/85 117,172 *1984/85 129,758
114 164 208 236 357 477 678 1007 166 289 563 1325 3108 6853 18,892 102,882 116,080
1.80 2.10 3.67 4.88 6.75 8.12 10.46 15.16 2.38 3.89 7.70 17.86 43.26 91.69 253 1518 1772
Vocational Schools 4
2.51 2.67 3.09 3.35 5.06 6.76 9.50 14.05 2.3) 3.95 7.43 16.88 38.54 83.98 223 1152 1300
Proportional Differential Vocational School Costs Rer Student (4-3)/4
1.39 1.27 0.84 0.69 0.75 0.82 0.91 0.93 0.97 1.015 0.96 0.915 0.89 0.92 0.88 0.78 0.73
EBqxpeitures on educaticn are expressed in currentprices: 1969/70- 1976/77in millionsof Lirot, 1977/78- 1982/83in millionsof Shekel, from1983/84in txousands of new Shekel. Expenditures per student: 1969/70- 1976/77thousands of Lirot, 1977/78- 1982/83thousands of Shekel, from1983/84rew Shekel. *New series
Source:Statistical
- 23 -
Abstractof Israel
-f0.39 +0.27 -0.16 -0.31 -0.25 -0.18 -0.09 -0.07 -0.03 +0.015 -0.04 -0.085 -0.11 -0.08 -0.12 -0.22 -0.27
the national expenditureestimates include the costs of boarding (thoughtto be more prevalent for general school pupils) and the teachingstaff in the vocational school sector is formallyless qualified,leading to lower (salary-related)costs in these schools;again, vocationalschools are of larger average size than general schools.These factors may underlie the relativelylow vocationalschoolingcosts recordedin Table 5. Finally, the exclusion of depreciationon buildings and equipment from official educationalexpenditureestimatesmay have biased the estimatespresentedin the table in favor of vocationalschools:however, the new series introduced in 1984/85,and which includesdepreciation,has resulted in a wideningof the gap between measuredvocationaland general school costs.
Further work is now underway on the estimationof unit costs in Israeli secondary schools,based on detailedexpendituresof a sample of academic and vocationalschools (includingboth one track and comprehensive schools). The findingsfrom this research,when available,may require some reconsiderationof the results in Table 5. Meanwhile,taken at face value, the relative cost estimates,togetherwith the regressionresults reported earlier, do suggest that vocationaleducationin Israel is at least as costeffective as academic educationat the secondary level of schooling. This conclusionis strengthenedwhen account is taken of additionaloutcome factors, to which we turn.
The two groups of individualson whom this study focusses, academicand vocationalsecondaryschool completers,are drawn from very differentpopulations. Vocationalschool pupils differ from their academic - 24 -
secondary school counterpartsin a number of ways. They tend to be of lesser academic ability, to come from a lower socio-economicbackground,are more likely to be of Oriental origin and their parents are less educationallyqualified.15/
Since it was not possibleto control for all of these factors in the regressions,our finding of equal earningsfor the two groups may not imply equal secondary schoolingoutcomes. In the absence of secondary schooling,those who attended a vocationalschool would be expected to earn less than their academicschool peers: attendanceat a secondaryschool will have resulted in a closing of the earningsgap between the two groups. In this case, the 'value added' of vocationalschoolingis greater than that of academic schooling,given the heterogeneityof the two groups.
Not only may the full earnings impact of vocationalschools (which we are not able to measure in this study) exceed that of academicschools, but externalityeffects too may be greater.In Section 1 we noted that the objectivesof the vocationalschooling system in Israel extend considerably beyond that of supplyingskilledworkers to the economy. These wider, equity, aims include the provision of a schooling frameworkfor less advantagedand lower ability youngsters('to keep them off the streets'), and their integrationinto work and, at age 18, into compulsorymilitary service.While, again, we are not able to put a price tag on these societal
15 Median years of parental schoolingof boys in academic secondary schools is 10.6. Comparablefigures for vocationalschooling tracks are as follows: metal work, 7.8; automobile,7.3; electricityand electronics, 10.0; fashion and tailoring,7.4; hotel and tourism,8.0. See Bar (1984). - 25 -
benefits, it is clear, particularlyin the Israelicontext, that they are real and tend to raise the underlyingsocial rates of return to vocational education.
3. Vocational Education,OccupationalChoice and Earnings
The previous section has been concernedwith a comparisonof the earningsof vocationaland academicsecondaryschool graduates.In this section we pose the qu stions: to what extent are vocationalschool completersemployed in occupationsrelated to the main subject area studied at school? Are there significantdifferencesin the earningsof those employed in jobs related to subject studied at school and those not working in subject-relatedoccupations?
matchings: Education-occupation
The Census questionnairewas unusual in addressinga specific question to those individualswhose formal educationterminatedat the agriculturalor vocationalsecondary school, concerningthe main subject of study, whether in Agriculture,Electricity,Electronics,Metal work, Automechanics,Clerical and book-keeping,Sewing and fashion,and Hotel management.
For each vocationalschool completer,we compared subject studied with current job held (using 2-digit occupationalcodes) to see if vocational educationreceivedwas related to occupation.Two alternative - 26 -
matching procedureswere employed, 'direct"matchings and "wider" matchings. For direct matchings,a worker is defined as matched if he works is in an occupationdirectly related to the subject studied;for example,the subject of Electricityand the occupationalcategory Electricians/Electronic Fitters constitutea direct match. Wider matchings include closely related occupations,in addition.In the latter case we take account of the dynamics of career development:thus an individualwho had studied Electricitymight go on to become a TechnicalSalesmanor open his own electricalbusiness as a Working Proprietorin the Retail Trades. While admittedlyjudgmental,it is not thought that the proceduresadopted would occasionany great dissent.16/
Table 6 shows the proportionof matched workers,by field of study, according to direct and wider matchingregimes.Overall, 37 percent of vocationalschool completerswere employed in occupationsrelated to the course of study pursued (47 percent on the basis of the wider matchings). Leaving aside the categoriesSewing and fashion,and Hotel management,where the number of observationsare small, the proportionof matched workers does not differ markedly across subject of study categories(with the exception of Agriculture).Relative frequenciesrange from 38-51 per-cent for direct matchings and between 45-60 percent for wider matchings;ranking by subject
16 Details of the educational- occupationalequivalencesused in the matchings procedure is provided in the Appendix. - 27 -
Nrbm
ax
Averag Ilthly
Rill Timn Male Salrd
SChol CD pleters Area of Study
Nluber Average of NImhily Workers Earnirgs*
ERurV of atdmBdaff Nm-Matdied Rers by hbject of StLdy Wkrs, Ckmpl.tn of Vocativul Sdtols - Tsrali
Direct Training- OzWation Percent Average of Workers Monthly in Matched Earni*V of Occupatiark* Matched Workers*
Matchig Average Mointly Earnigs of Non-Matched Workers*
Cmsus, 1983
Wider Training-Ocuzation Percent Average of Workers Monthly in Matched Earninr Occupstions** of Matched Workers*
Matchina Average Monthly Earrnigs of nonMatched Workers*
Agriculture
1002
37,898 (28,782)
6.09 (61)
29,324 (11,861)
38,448 (29,453)
14.47 (145)
45,849 (28,814)
36,571 (28,408)
Electricity
1357
37,602 (27,694)
42.08 (571)
37,768 (18,918)
37,482 (32,639)
51.14 (694)
41,217 (34,151)
33,824 (17,694)
Electronics
691
43,759 (29,633)
49.06 (339)
51,215 (35,915)
36,579 (19,461)
60.35 (417)
50,212 (34,142)
33,938 (16,814)
Metal work
4337
36,834 (28,530)
37.91 (1644)
36,944 (26,525)
36,767 (29,693)
45.35 (1967)
39,996 (37,134)
34,210 (18,170)
Autceechardes
1967
36,341 (22,450)
42.76 (841)
37,122 (23,655)
35,757 (21,497)
56.58 (1113)
38,556 (25,517)
33,451 (17,258)
Bookkeping, 331 Secretarial & Clerical
38,007 (22,045)
51.06 (169)
37,990 (19,139)
38,025 (24,777)
58.31 (193)
40,945 (22,257)
33,899 (21,148)
Sewirg
Fashion
20
30,213 (16,522)
20.00 (4)
17,827 (3,175)
33,516 (17,126)
20.00 (4)
17,827 (3,175)
33,516 (17,126)
Hotel Mmagemnt
93
29,433 (10,893)
40.86 (38)
31,009 (10.112)
28,344 (11,364)
40.86 (38)
31,009 (10,112)
28,344 (11,364)
9798
37,396 (27,129)
37.4 (3667)
38,274 (25,638)
36,870 (27,973)
46.7 (4571)
40,892 (33,104)
34,338 (20,037)
IUrAL
* Stamiard deviations in parentbesis ** absolute ruiers in parentheses
- 28 -
1 7/ differs somewhat for the two matching processes.
The table also reports average monthly earnings for matched and non-matchedworkers, by subject. For the wider matchings,average earnings of matched workers consistentlyexceed those of non-matchedworkers (on average by about 20 percent). Turning to the directlymatched workers, the average earnings differentialfalls to only 4 percent, though the picture differs according to field of study: earningsare higher for Electronics and Auto-mechanics,lower for Agriculture,and similar for the remaining three subjects. These comparativeearnings figures (as we shall see) must be treated with caution, since they are "gross"results,with no control made for other factors that may differentiallyinfluenceearnings, i.e. differencesin other characteristicsof the two groups, such as years of schooling,experience,quantityof work, and so on. The regressionanalysis that follows presents "net" results.
Earnings functions:
Earnings functionsare estimated for the sub-sampleof 9788 individualswho completedvocationalsecondaryschool.1 8 /
Tne objective of
17 There is also considerablestabilityof the matched proportion,by age. For the quinquennialage groups between age 25-49, the percentageof matchings were: Age
25-29 Direct Matchings 38.2 Wider Matchings 44.4
30-34
35-39
40-45
45-49
39.5 48.9
36.6 47.5
33.6 45.0
33.0 48.4
All Age Groups 37.4 46.7
18 The results we presentedmore fully in Neuman and Ziderman, 1988B. - 29 -
the regressionanalysis is to examine whether there are significant differencesbetween vocationalschool completersthat work in field-of-study related occupationsand those who do not. The specificationof the regressionmodel is similar to Regressions1 and 2 reported in Table 3, but with the followingchanges:
a)
to test for earnings differencesbetween matched and non-
matched workers, a dummy variableVOC.M is introduced,representingmatched vocationalschool completers,with non-matchedin the constant term (VOC.M replacesVOC used in Regressions1 and 2).
b) a series of dummy variables representingsubject of study is included (with Agricultureas the referencegroup) in order to test for differences in earnings due to subject of study: ELECTRIC (Electricity), ELECTRON (Electronics),METAL (Metal work), AUTO (Automechanics), CLERIC (Clericaland book-keeping),SEW (Sewingand fashion)and HOTEL (Hotel management).Occupationdummies are now excluded,because of a high correlationbetween vocationalsubject studied and occupation.
Results are presented in Table 7, on the basis of direct and wider matchings,respectively.Overall, the results are similar to those of Table 3 relating to the whole sample, for common variables.
- 30 -
Table 7 Regressions of Monthly Earnings (1n) Full time. Male. Salaried Workers. Coopleters of Vocational Schools Israeli Census. 1983 n-9798
Direct Matchings Independent Variable
YRS.SCH EXP B p2 EXP*YRS.SCH Certification: P.CERT S.CERT BAG WEEKS (in) HOURS (in) ETHNIC Economic Sector: IND ELECT COMM FIN TRANS PUB PRIV CONST Subject of Study: ELECTRIC ELECTRON METAL AUTO CLERIC SEW HOTEL VOC.M. Intercept R2
Co-efficient
t-statistic
Wider Matchings Co-efficient
t-statistic
1.38 2.06 4.98 2.36
0.024 0.025 -0.0007 0.002
1.51 2.13 5.07 2.37
0.022 0.025 -0.0007 0.002
0.011 0.073 0.112 0.302 0.374 -0.137
0.44 3.10 3.46 13.16 9.66 11.84
0.013 0.067 0.103 0.298 0.367 -0.134
0.101 0.284 0.11 0.133 0.084 0.019 -0.047 -0.005
3.08 6.48 0.30 3.31 2.36 0.55 1.16 0.14
0.055 0.184 0.057 0.042 0.044 -0.053 -0.024 0.055 6.771
2.36 6.62 2.88 3.27 1.25 0.42 0.41 4.54 25.72
0.155
0.095 0.285 0.008 0.139 0.092 0.033 -0.054 0.00002 0.033 0.158 0.040 0.043 0.016 -0.054 -0.038 0.114 6.838 0.161
- 31 -
-
0.38 2.84 3.23 13.05 0.53 11.66 2.90 6.54 0.23 3.49 2.58 0.95 1.34 0.00 1.43 5.67 2.01 1.97 0.46 0.43 0.65 9.80 26.07
Of more central importance,however, are the coefficientson the VOC.M term; a positive sign would indicatethat, given actual number of years of schooling,course of vocationalstudy and type of certification obtained,vocationalschool completersthat were employed in study-related jobs earn more than those who were not. The coefficientsshow that matched workers do achievehigher earnings than their non-matchedcounterparts:by about 6 percent for the direct matchingsand over 11 per-cent for the wider 1 9/ 20/ In addition, it is seen that subject of study does exert matchings.
a differentialeffect on earnings. For the wider matchings those who studied Electronics(a small group of 691 out of 9798) have the highest earnings, exceeding those of the base group (Agriculture)by about 16 percent.Metal work and Automechanics(the two largest groups, with 4337 and 1967 respectively)have higher earningsof about 4 percent comparedwith 21 / Agriculture,while for the other groups there is no earnings advantage.
Given that earningsdiffer by course of vocationalstudy, the question arises whether our result for the whole sample, that individuals 19 The actual percentageeffect of the VOC.M dummy variable on earnings is somewhathigher than the dummy variablecoefficientmultiplied by 100 (see Halvorsen and Palmquist,1980). 20 In some additionalregressionruns (not reportedhere but available on request) interactionterms between VOC.M and between YRS.SCH and EXP, respec.ively,were added, parallel to the specificationof Regressionin Table 3. Here again evidencewas found that the improvedlabor market performanceof matched workers functionsthrough the human capital variables (years of schoolingand years of job experience);thus for the wider matchings,matched workers earn more than an additional2 per-cent annually for each year of schooling,over non-matchedworkers, and 0.5 per-cent for each year of labor market experience. 21 These rankingsdiffer from those based on mean salary presented in Table 3: this is because for the latter, there was no control for other explanatoryvariables,as there is in the regressions. - 32 -
working in matched occupationsearn more than those who do not, also holds for each of the courses of study pursued. To test this, we reran the regressionsreported in Table 7 (but dropping the subject of study dummies), for each subject course for which there were sufficientobservations. The VOC.M coefficientswere found to be positive and significantfor all of the regressionsbased on the wider matchingsand for the majority of the direct matchings regressions,thus confirmingoverall that the differential earningseffect is present for the course of study sub-samples. For the wider matchings regressions,the VOC.M coefficientswere as follows (the t statistlc is shown in parentheses): Agriculture0.172 (3.05),Electricity 0.117 (3.59),Electronics0.262 (5.52),Metalwork 0.103 (5.98), Automechanics0.098 (4.04),and Clerical 0.205 (3.07).
How does our finding, that individualseducatedat vocational secondary schools earn more if employed in an occupationrelated to their course of study, relate to the results presented in the previous section? There, it was reportedthat no significantdifferencewas found between the average earningsof individualseducatedat academicsecondary schools and the earningsof vocationalsecondaryschool completers,as a whole. How do the earningsof each sub-groupof vocationallyeducatedindividualscompare with those who go through the general secondaryschool stream? We probe these issues in the regressionsreportedin Table 8.
Returning to the broader sample, comprisingboth vocationaland academic secondarycompleters,two dummy variables,relatingto type of secondary school attended, are now defined:VOC.M (- 1, if the worker is a - 33 -
vocationalschool completerworking in a matched occupation,and -0 if otherwise),and VOC.U (-1 if he is an unmatchedvocationalschool completer, and -O if otherwise).The referencegroup is thus workers who have completed general secondaryschooling.A positive (negative)coefficienton one of the VOC sub-categorieswould indicatedhigher (lower)average earnings than for those individualsthat had completedan academicsecondary school. The regressionmodel specificationis otherwiseparallel to that of Regression2 in Table 3; a set of occupationaldunwmies replace the subject-of-study dummies used in the regressionsin Table 7 (the Census did not collect informationon the latter for academicsecondaryschool completers).
The reportedcoefficientson the VOC.M and VOC.U variables in the regressionsin Table 8 are significantlypositiveand nonsignificant, respectively.The implicationof these results is clear. They indicatethat while there is no differencein earningsbetween academicschool completers and those vocationalschool completersthat work in occupationsunrelatedto vocationalcourses studied at school, the earnings of workers employed in matched occupationsexceed those of workers who attendedacademic schools (by over 8 per cent in the regressionrelatingto wider matchings and by 22/ approaching10 per cent for direct matchings).
22 These results may, at first glance, appear to be in conflictwith the data reportedin Table 7, where the coefficienton the VOC.M term is larger for the wider matchingsregressions;here the opposite is the case. However, the samples and the referencegroup differs in the two sets of regressions. Table 7 regressionsrelate to vocationalschool completers only and compare the earningsof the two sub-groupswithin this category. In contrast,the Table 8 regressionsinclude,in addition,academicschool completers,and comparesthe matched and non-matchedvocationalschool completersub-groupsseparately,with their counterpartsfrom the academic schools. - 34 -
Table 8 Regressionsof Monthly Earnings (In) Full Time, Male, SalariedWorkers General and VocationalSchool Completers Israeli Census, 1983 (n=13879)
Independent Variables
Direct Matchings Coefficient t-Statistic
Wider Matchings Coefficient t-Statistic
YRS.SCH EXP EXP2 EXP*YRS.SCH WEEKS(ln) HOURS (in) ETHNIC
0.017 0.034 -0.0008 0.001 0.312 0.312 -0.131
1.34 3.52 7.32 1.79 16.58 9.60 13.59
Economic Sector: IND ELECT COMM FIN TRANS PUB PRIV CONST
0.072 0.260 -0.028 0.128 0.073 -0.029 -0.072 0.004
2.40 6.55 0.86 3.82 2.29 0.94 1.99 0.13
0.069 0.261 -0.027 0.130 0.074 -0.026 -0.017 0.003
2.30 6.59 0.84 3.88 2.32 0.83 1.96 0.08
0.283 0.360 0.525 0.215 0.224 0.212 0.134 0.173
3.70 7.99 11.65 4.90 4.87 4.60 2.60 4.03
0.279 0.361 0.480 0.211 0.199 0.208 0.134 0.174
3.65 8.01 10.68 4.82 4.35 4.53 2.61 4.07
Certification: P.CERT S.CERT BAG
-0.001 0.063 0.113
0.07 3.18 4.66
-0.001 0.064 0.116
0.05 3.22 4.81
VOC.M. VOC.U.
0.096 -0.003
6.84 0.27
0.081 0.013
6.27 1.05
Intercept
6.940
31.49
6.959
31.57
R2
0.173
Occupation: ACAD TECH MANAG CLER SALES SERV UNSKILL SKILL
0.017 0.034 -0.0008 0.001 0.312 0.313 -0.129
0.173 - 35
-
1.29 3.49 7.31 1.82 16.57 9.64 13.43
The overall regressionresults in Table 8 lead to an important refinementof the conclusionspresented in the foregoingsection.We now see that type of school attended,whether vocationalor academic secondary,does have an impact on labor market income. It is only when vocational school completersare employed in jobs unrelated to courses of study pursued at school, that earningsare broadly similar to those of workers who studied atacademicsecondary schools. For those vocationalschool completerswho work in study-relatedoccupations,average earningsare significantlyhigher than those of workers who studied at academicsecondary schools.
Finally, separateregressionsare run for five-yearage groups (within the 25-49 age range) to see whether these conclusionshold for each individualage cohort: the same specificationis employedexcept that the experiencevariables are dropped, since in standardizingby age the number of years of job experiencewill be similar for individualswithin each age cohort. Selectedresults are given in Table 9, for the certification variables ( which indicatesa decline in credentialismas age of group increases)and the VOC sub group dummies.
The age cohort analysisconfirmsthe central finding of the regressionsrelatingto the total sample: those individualsthat attended vocationalschools and work in matched occupationsconsistentlyearn more than their counterpartsthat went through the academic secondaryschool stream. There is a tendencyfor the average earnings differentialto rise with age, from about 4 per cent for the first age cohort reaching11 to 15 per cent for the older age groups.Non-matchedvocational school completers
-
36 -
Table9 Hmemuim of hthgy Eamrn (in). by AM Gnx. Selected Coefficijats: Fill Tim. Nle. S1aaiod Wrklm GQIpetes of OMeral and Votiaxl Sools - Israeli
CGEm. 1983
(Selected Coefficients)
Age (Grc: 25-29 Direct Wider Mathing MatciArs
Are Gr(.: 30-34 Direct Wider Matchirgs Matddis
AMeGnrm: 35-39 Age Qr:g: 40-44 Direct Wider Direct Wider Matchings Matchirgs Matchins Matcings
Age Gra: 45-49 Direct Wider Matcdrhgs Matchings
-0.134 (1.97)
0.01 (0.01)
0.002 (0.03)
P.CERr
-0.007 (0.22)
-0.007 (0.21)
0.028 (0.65)
0.028 (0.65)
0.034 (0.71)
0.033 (0.69)
.CERr
0.084 (2.50)
0.083 (2.48)
0.049 (1.22)
0.052 (1.28)
0.114 (2.52)
0.111 (2.47)
0.073 (1.15)
-0.074 (1.16)
0.062 (1.05)
0.066 (1.11)
BAG
0.167 (4.20)
0.167 (4.22)
0.093 (1.88)
0.100 (2.02)
0.136 (2.34)
0.135 (2.34)
0.049 (0.64)
-0.041 (0.54)
0.101 (1.38)
0.107 (1.45)
Wc. M
0.040 (1.66)
0.042 (1.84)
0.107 (3.89)
0.069 (2.72)
0.088 (2.80)
0.090 (3.18)
0.152 (3.35)
0.115 (2.85)
0.143 (3.03)
0.105 (2.58)
%Wx.U
-0.015 (0.74)
-0.025 (1.17)
-0.055 (2.35)
-0.064 (2.64)
0.028 (1.08)
0.013 (0.50)
-0.027 (0.79)
-0.042 (1.16)
0.041 (1.16)
0.044 (1.15)
4,500
4,500
3,776
3,776
2,778
2,778
1,492
1,492
1,333
1,133
0.084
0.085
0.107
0.104
0.147
0.148
0.195
0.194
0.195
0.194
R2
t values in parentheses
- 37
-
-0.133 (1.96)
do not display any significantdifferencein earnings from the reference group, with the exceptionof the 30-34 age cohort, which earns less.
Costs and benefits of vocationalschooling
The regressionanalyses show that, given the higher earnings accruing to vocationalschool completersworking in matched occupations (i.e. occupationsrelated to course of study), overall, terminalvocational secondaryeducationyields higher monetaryberefits than general academX. education.It was shown in Table 5 that for the financialyear 1982/83, which most closely relates to the year of the Census, vocational schooling costs per studentwere on average 8 per cent below those of academic schools. In overall terms these relativecost estimates,togetherwith the regressionresults on the benefits side, point to a benefit-costadvantage of terminalvocationalover academicschooling in Israel.
However,we have noted the widely held view in Israel that vocationaleducation is the more costly, by up to a third.2 3 /
If this were
indeed so, then it might be the case that the higher costs of vocational educationwould offset the benefits, so that the net present value (NPV) of vocationalschoolingover acedemicschoolingwould be negative. In order to test this, we subjectedour overall results to a series of sensitivity tests, by experimentingwith alternativevalues of the parametersin the followingequation:
23 This view was expressed in interviewswith relevantgovernment officials. - 38 -
Tale
10
Inmrenental Net Present ValuB of Vocational ScdMolirg a'yer AcadmicdSecxxxlay Schoolin; (Israeli
Shekel, per stuident)
Direct Matchings (v -0.96)
Wider Matchings (v - 0.81)
Relative vocational school costs (c) -0.08 0.00 +0.33
Discount Rate (i):
Relative vocational school costs (c) -0.08 0.00 40.33
5%
Percentage in matched occupations (m): 27%
151 096
131 120
48 721
37%
199 659
179 683
97 284
47% Discxxmt Rate (i):
-
-
-
-
171 583
151 608
69 209
212 558
191 583
110 183
8%
Percentage in matched occupations (m): 27%
99 123
80 219
2 242
37%
128 834
109 930
31 953
47%
-
-
-
-
111 657
92 754
14 777
136 726
117 822
39 845
Discoumt Rate (i):10% Percentage in matdhed occupations (m): 27%
77 985
59 744
-15 503
37%
100 113
81 871
6 625
87 320
69 079
-6 168
47%
-
-
105 990
87 749
12 502
-
39 -
-
-
n NPV
E
(m v YA - C CA)(l + i) t, t=l
-
where YA
measures average income of academic school completers, in year t
v
is the proportionalearningsadvantage of vocational school completersworking in matched occupations
m
is the proportionof vocationalschool completers employedin matched occupations
c
relates to excess vocationalschoolingcosts over academic school costs, and is measured by the ratio (CV-CA)/CA,where Cv and CA measure annual costs per studert in vocationaland academic schools, respectively.
i
is the discount rate, and
n
is the time horizon of the appraisal.
Results are presented in Table 10, on the basis of a 35 year time horizon (includingthree years of army service from age 18), a (conservative)secular annual increase in incomes of 1 per cent, and three 24 / years of secondaryschooling.
Our central findings,with positive NPVs,
are shown underlined: for direct matchings these relate to v = 0.096 and m -
0.37 (based on the matched percentagesgiven in Table 1), and for wider
matchings to v - 0.081 and m = 0.47, with c = -0.08 and i = 0.08 in both cases.25/
24 Under the 1968 Reform of the Israeli educationalsystem, secondary high schools offer a 3-year program, comparedwith four years previously. 25 Even if a 4-year secondaryschool program is assumed, the NPVs remain positive. -
40 -
The table shows alternativeNPV results,based on different combinationsof higher relativevocationalcosts (positivevalue for c) alternativediscountrates and lower value for the m parameter.The overall effect of all these differing combinations,while changing the level of the NPVs, is to leave them positive.Only in the worst assumptioncase, with high vocationalschool costs (in excess of those of academicschools by a third), of a 10 per cent discountrate and a lower matched percentage (ten percentagepoints below those relatingto the sample),are the NPVs negative,but only marginallyso.26/ We may conclude that vocational schooling in Israel representsa sound investmentir cost-benefitterms. This overall conclusionwould be strengthenedif a higher secular increase in real incomeswas assumed, as seems plausible,with a resultant enhancementin absoluteterms of the earningsadvantageof matched vocationalschool completers.
4. Vocationaleducation and non-formaltrainingalternatives
We noted that the 1983 Census questionnaireincludedwithin the category of vocationalschool completersthose individualsthat had attended nonformal training institutionsrather than vocational schools as such. Our sample of vocationalschool completersin fact includesa small number of these individualsthat had instead completedtraining in one of these nonformal modes. In this sectionwe shift our focus from a comparisonof
26 With this configuration,the NPV "loss" representsabout two weeks salary for direct matched workers and only a few days salary for the wider matchings case. - 41 -
vocationalschools with academic schools,to one with alternativetraining modes for youth.
These alternativetrainingmodes for youth represent the residual areas of control that remainedwith the Ministry of Labor after the transfer of vocationalsecondary schools to the Ministryof Education in the late 1950s. In 1986 some 17,500 youth were enrolled in these institutions,which cater for youngstersfrom disadvantagedbackgroundswho are unable to be accommodatedby the regular schoolingsystem. There are essentiallythree main types of training institutionsfor youth run by the Manpower Training and DevelopmentBureau of the Ministry of Labor.27 /
The traditional
apprenticeshipand courses at industrialschools (locatedin the plants of various major industrialcompanies)typicallylast four years, with the week equally dividedbetween theoreticalstudies in a classroom setting and practical trainingon-the-job:they are broadly comparablewith the vocationalschool masmam track.2 8 / The one-yearfull-time trainingcourses for 16-17 years old (many of whom are drop outs), are devoted almost entirely to practical training for teenagersof weaker academic ability.The industrialschool stream, accountingfor over half of all youth enrolled in these programs. is both the largest and growing slowly; the other streams are in gradual numericaldecline.
27 See Kroner (1987) for a review of these programs for disadvantaged youth. 28 These equivalenceswere formallyinstitutedby an Agreement,signed between the Ministriesof Educationand Labor on the "Equalizationof schooling and vocationaltrainingin the grantingof graduation certificates",August 1984. - 42 -
Accounting for some 7 per cent of 15-17 years old (comparedwith the over 80 per cent that attend secondaryschools)these training institutionsare marginal in Israel, not only in terms of numbers. Unlike the case in many other countries,historicallyan amalgam of culturaland social factors have militated against any major role being accorded to these non-schoolingtrainingmodes in Israel. A detailed considerationof the essentiallynon-economicreasons underlyingthe peripheralrole played by nonformal trainingmodes in Israel is beyond the scope of the present paper.2 9 /
Nor is it germane to the questionat hand. The issue is not how
these existing institutionalarrangementscame into being, but rather, given their origins,whether they remain relevantover the longer term as circumstanceschange.
A decade ago, in a cost effectivenesscomparisonof the four main vocationaltrainingmodes for youth in Israel (Borus 1977), Michael Borus argued that vocationalschools were not cost effective in relation to other trainingmodes, particularlythe traditionalapprenticeship.Examining the earnings of a sample of individualswho had completedone of the four main trainingmodes, for the two years after completingtraining (followinga three-yearperiod of compulsorymilitary service)Borus was unable to find any significantearnings differencesbetween the four groups. Yet vocational schooling is by far the most costly mode. Borus showed the average societal cost per completer of industrialschools and short teenagercourses to be from a third to a quarter of that of vocationalschools; course completer 29 The interestedreader is referredto Iram and Balicki (1980) for a discussionof these issues, comparingand contrastingthe systems of vocational educationand trainingin Israel and Switzerland. - 43 -
costs for the apprenticeshipwere only one seventh of vocationalschool costs.30/
The results of Borus's researchrelated to only two years posttraining labor market experience,and were thus silent about outcomesover the longer term. A more recent paper (Ziderman1988), employing a similar methodology,followedup a larger sample of trainingcourse completersover a ten year period (includingthe three years of army service).Again, no significantearnings differentialswere found between individualswho had attendedvocationalschools and between apprenticeshipand industrialschool completers,respectively.31/
On grounds of cost-effectiveness, these findings indicatethe desirabilityof a redirection,at the margin, of vouth trainingfor the skilledmanual trades in Israel, away from vocationalschools (principally the masmam track) towardsnon-formaljob-relatedtrainingmodes.32 / Yet it 30 Based on the then current regime for apprenticeshipsof one day of classroom instructionper week and five days trainingon-the-job;the subsequentmove towards a system of three days classroomand three days trainingwill have raised average apprenticeshipcosts towards those of the industrialschool. 31 For a number of the follow-upyears, completersof the teenager courses did sustain lower earnings than individualsemanating from vocationalschools. Although not in line with those of Borus, this particularresult is not altogetherunexpected. Most of the students enrolled in these teenagercourses came from very low socio-economic backgrounds,many were drop outs from secondary schoolingand the courses, though full-time,lasted for up to a year only (comparedwith three to four years for the other trainingmodes). 32 Indeed, in comparisonwith other countries,the ten per-cent of youth aged over 15 that is attached to the labor market (includingthose both studyingand working) is inordinatelylow: for details, see the ILO Year Book of Labor Statistics. - 44 -
is the policy of both ministriesconcerned to work towards a movement in the opposite directi.o,with the aim of effecting improvementin the status of presently disadvrntagedyouth that are currently (or not as yet) under the Ministry of Labor umbrella, enabling them to enter the regular secondary school system. The industrialschool and the formal apprenticeship,the dominant trainingmodes for youth in many countries,are not viewed as potential main stream alternativetraininginstitutions,operatingalongside and in competitionwith vocationalschools.Very little is dane to develop them in this direction,and the stigma remains.As we have emphasized,the general consensus in Israel is that the appropriateframework for all youngstersup to age 18 is a formal schoolingone. This is evidencedin the upward movement over time in the percentageof youth aged 14-17 enrolled in school.3 3 /
This consensushas acted as a barrier against any broadeningof
the non-formaltraining system in Israel.
There are, in addition,other institutionalfactors that have militated against the developmentof non-formaltrainingmodes. To take but one example: it is argued that firms themselvesmay be unwilling or unable to assume a major role. Lacking in Israel are the necessarycadres of training instructorsto effect good quality on-the-jobtraining; the institutionof the meister, so central to the success of the German dual system, is absent in Israel. The questionhowever remains: given the lack of cost-effectiveness of vocationalschools'lower tracks in relationto nonformal training alternatives,will initiativesbe taken to beg'.nto develop these necessary capabilities,a prerequisitefor the fashionir;of a 33 From 60 percent in 1962 to well over 85 per cent today. - 45 .
parallelworkplace-orientated trainingsystem. In the present climate, it would seem that the chances are slim.
5. Summary and Conclusions
This paper examines, for the case of Israel, the efficacy (in terms of labor market outcomes)of vocationalschool education in relation to that of the academicsecondaryschool, for non-postsecondaryschool attenders. Given the relativelysmall fractionof youth that attend, and complete, tertiaryeducation in developingcountries,the secondary school completerpopulationthat does not continueinto tertiaryeducation,plays an importantrole in economicdevelopment. Since vocationalschoolingin Israel is sizeable - with over half of Israeli secondaryschool pupils attendingvocationalschools or vocationalstreams in comprehensiveschools, it is quantitativelyfar more importantthan in most other countries - the Israeli setting seems to be a fitting one for a case study comparing the outcomesof academic and vocationalschooling.It is hoped that the study contributesto a firmer basis for policy decisionsconcerningthe appropriaterole to be accorded to vocationaleducationwithin the schooling system as a whole.
Using data from the 1983 populationcensus, the study shows vocationalschooling to be more cost-effectivethan general academic education.In particular,those vocationalschool completersthat work in occupationsrelated to the course of study pursued at school earn more (by up to about 10 per cent annually)than their counterpartsthat attended - 46 -
gc.Leralsecondaryschools or those from vocationalschools employed in nor. course related occupations. Since these results seem to be at odds with the predominantlyheld view (of economists)that vocationalschooling is a socially inefficientform of education,particularlyin relation to traditionalacademicschools, it seems appropriateto probe further this apparent discrepancy.
In the standardtext on the economics of education,Mark Blaug discusses the usual distinctiondrawn between academicand vocational education,in this way:
This distinction,which is actually groundedin the nature of the two curricula,is allowed to carry the implicationthat some educationprepares studentsfor the 'worldof work' and some does not. All too frequently,however, those who have taken courses of study generallycalled 'academic' ...... reap substantial financial returns from their education,thus producing the paradoxicalconclusionthat academic educationhas a greater 'vocational'value than vocationaleducation. The traditionaldistinctionwas developedby educators but the labor market has its own way of appraising qualifications.(Blaug 1970, p 247).
And, indeed, a large number of cost-benefitanalyses,based on labor market earnings follow-up studies of vocationaland academicsecondary school completers,have shown that the higher costs of vocationalschool education (as measured in these studies)are not offset usually by any positive or sizeable earningsdifferentialaccruing to vocationalschool completers. The main thrust of all this researchis to reveal general secondary schools as the superiorsocietal investment,thus giving some underpinningto the conventionalwisdom, referred to above. -
47 -
However, these resultsmust be interpretedwith care. Particularlywhen the secondaryschool enrollmentratio is sizeable,pupils in the two types of schools differ in backgroundcharacteristicswhich, in turn, are correlatedwith earnings. Thus it is argued that in many countries,academicsecondaryschoolingprovidesaccess to tertiary education and more attractivelife chances than vocationalschools. Competitionfor entry into academic schools leads to rationingof places on the basis of student academicability: social class and parentalbackground also play a role. Unless these factors are controlledfor in comparingthe earnings of general and vocationalschool completers,biassed estimatesof the differentialearnings effect will result. Studies reporting equal postschooling earnings for the two groups may be masking very real differences in labor market outcomes favoringvocationalschool completers.
The present paper has shown the importanceof broadening the scope of these evaluationstudies,particularlyin relationto labor market outcomes. Too often such studies concentrateon earnings,without taking into account such interveningvariablesas type of occupationand its relevance to vocationalstudies pursued. In this case study, we have seen that such considerationsare central to a proper understandingof the labor 34/ market outcomes of vocationalschooling.
Future evaluationstudieswill
need to pay more attentionto issues of curriculum (includingthe type and 34 In a recent paper Hartog (1985),comparing the earnings of vocationaland general schooling in the Netherlands,shows that the introductionof interveningdummy variables for job level, as additional explanatoryvariables in the regressionanalysis,changes considerablythe nature of the results. - 48 -
scope of vocationalstudies),as well as to the nature of the occupation followed and its relationshipwith prior courses of study pursued.
- 49 -
References
Benavot,A. "The rise and decline of vocationaleducation,"Sociologyof Education.April 1983. Bar, E. Secondary School Educationin Israel, Jerusalem:Ministry of Education and Culture, PlanningBranch,March 1984. Blaug, M. An Introductionto the Economicsof Education,Penguin 1970. Borus, M.E. "A Cost effectivenesscomparisonof vocational trainingfor youth in developingcountries: a case study of four training modes in Israel",ComparativeEducationReview. February1977 Dougherty,C.R.S. and E. Jimenez, "The specificationof earnings functions: tests and implications,"Educationand TrainingDiscussionPaper Series No.100, Washington,D.C: The World Bank, June 1987. Easterlin,Richard A. "Israel'sdevelopment:past accomplishmentsand future problems",QuarterlyJournal of Economics,February1961. Grootaert,C. C6te d'Ivoire'sVocationaland Technical Education,PPR Working Paper No. 19, The World Bank, Washington,D.C., June 1988. Foster, P.J. "The vocationalschoolingfallacy in developmentplanning,"in C.A. Anderson and M.J. Bowman (eds.) Educationand Economic Development,Chicago:Aldine PublishingCompany, 1965. Halvorsen,R. and R. Palmquist,"The interpretationof dummy variables in semilogarithmicequations,"American EconomicReview, Vol.70, No.3, 1980. Hartog, J. "Earningsfunctions:beyond human capital",ARplied Economics, 1986. Iram, Y.
"Socialpolicy and educationfor work in Israel," Issues in Education,Vol. 4, No. 3, Winter 1986.
Iram, Y. and C. Balicki, "Vocationaleducation in Switzerlandand Israel. comparativeanalysis",Canadianand InternationalEducation.Vol. 9, 1980. Kahane, R. and L. Starr, The impact of rapid social change on technological education:a Israeli example,"ComparativeEducationReview, June 1976. Katz E. and A. Ziderman, "On education,screeningand human capital," EconomicLetters,Vol.6, 1980. Komenan A. and A. Ziderman,"Is vocationaleducation in retreat:an internationalcomparison?" forthcoming,1989.
-
50
-
2 Kroner, Y.
Preparing of Disadvantaged Youth for Employment, paper presented at the US-Israel Labor Conference, Washington, D.C. Jerusalem: Ministry of Labor and Social Affairs, Manpower Training and Development Bureau, November 1987.
Metcalf, D.H. The Economics of Vocational Training: Past Evidence and Future Considerations. Staff Working Paper No. 713. Washington, D.C.: The World Bank, 1985. Mincer, J. Schooling. ExRerience and Earnings, New York: National Bureau of Economic Research, 1974. Moock, P.R. and R.T. Bellew, Vocational and Technical Education in Peru, PPR Working Paper, The World Bank, Washington, D.C. 1988. Neuman, S. and A. Ziderman, "Vocational schools can be cost-effective in relation to academic schools: an Israeli case study". Mimeo 1988A. Neuman, S. and A. Ziderman, "Vocational education, occupational relevance and earnings: the case of Israel,' Mimeo 1988B. Psacharopoulos, G. "To vocationalise or not to vocationalise: that is the curriculum question," International Review of Education. 33(2), 1987. Tilak, J.B.G. "Economics of vocationalization: a review of the evidence", Canadian and International Education, Vol. 17, No. 1, 1988. Technological Education in Israel. Jerusalem: Department of Technological Education, Ministry of Education, 1987. Ziderman, A. Israel's Vocational Training. PPR Working Paper No 26, World Bank, Washington, D.C. The World Bank, July 1988
The
Ziderman, A. "Alternative training modes for youth in Israel: results from longitudinal data," Comparative Educational Review, May 1989. Zymelman, M. The Economic Evaluation of Vocational Training Programs. Baltimore: The John Hopkins University Press, 1976.
- 51
-
Umi Matchina of Vocational
Fduation
Cairse with
pmation
Matchinrg Ocauations Direct Matcings
N o. Sibjec Of St rI
AViote
Elertricity
Cp
MM(2
1357
OcazMations
Farm proprietors (wrkirig their oin farm) Farm managers Skilled workersin agriculture Farm hands % directly mtduhd ftinxuering practical Electrician
% directly EeItrudcis
metal WkO&
691
4337
1967
NQo.of Matched I
10 25 24 2 6.1%
tecduicians and engineers and.electronic fitters
indtdwd
95 476
42.1%
ERjgieering tedcnicians and practical ergineers System analysts ard ccmpiter prograxers Electricians and electronic fitters Fitters of precision instruments % directly otduihed
203 7 119 10 49.1%
Wider Matchings (Additional to Direct Matching Ocacpations) No. of Ma IwIivilS
Mated .Occupations
Other managers
84
% mDre widely matdhBd
14.8%
Other managers
76
Working proprietors in retail trades Technical salesmen % mre widely imdatid
10
Other managers
54
Working proprietors retail trades Technical Salemien % mure widely
37 51.1%
in
natcied
3 21 60.4%
aigireexing teclimcians and practical ergineers 140 Raw matal processors 37 Tirnsmiths, welders, blacksmiths & workers in finished metal producrts 1185 Assemblers, installers & repairmen of aekddnes and transport vehicles 222 Pipe fitters and pluibers 60 % directly nBtdmhd 37.9%
Other managers
214
Technical
109
Engineering technicians and practical engineers Mechanical equipment operators Asseablers, installers & repairmen of madhines and transport vehicles
Other managers
Operators of digirg, road constxuction Drivers % dlrectly imtdmd
building and equipment
-
52
-
64 4 477
61 235 42.7%
salemien
% Dre widely nmathed
87
Technical Salesmen Tinsmiths, welders, blacksmithsand workers in finished metal products
% nmre widely
45.4%
MatdCed
69 116
56.6%
IJlBNDK(continued)
Subject of StuJy Clerical and Bodk Kkepig
No. ofNo. CbrsHatchedMaceMtddMthd Cbmpleters 331
Sewingard Fatdmi
20
HbtelTrades ad
93
IHme
Ebnrics
All Courses Of Study
9798
of Iicd IOcc
Supervising clerks Boodepers Secretaries, typists and key punchoperators Store Clerks, warehouse workers andfiling clerks General office clerks Othr clerical uorkers
8 102
No. of sationO
tio
Other Managers
24
9 19 10 21 51.1%
58.3%
Tailors, sewers ard related workers %directly miatdc
4 20.0%
% imre widely natrted
20.0%
Cooks, Waiters and barterders 8 directly iatdud
10 28 40.9%
%
40.9%
% directly mated
37.4%
%
- 53 -
Widely m8dd re widely ,mtdud
46.7%
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33640 WPS142 VocationalSecondarySchoolingIn Israel: A Study of Labor Market Outcomes
Adrian Zlderman
January1989
C. Cristobal
33640
