General education, vocational education and skill mismatches: Short-run versus long-run effects

Abstract

Earlier research showed that obtaining a vocational instead of a general qualification has contrasting effects on employment and earnings over the life course. Relying on two international datasets (ESJS and PIAAC) and focussing on upper-secondary and post-secondary non-tertiary qualifications, we find similar contrasting effects in terms of educational and skill mismatches. While vocationally educated individuals are less likely to face mismatches at the start of their careers, this advantage gradually fades over time. This pattern is not only found for overall mismatches, but also for mismatches in terms of several more detailed types of skills. We also find more favourable effects in terms of avoided mismatches for vocational programmes that combine a specific focus with workplace learning, while programmes that combine a less-specific focus with workplace learning seem to be less effective.