Determinants of labor market outcome differentials between TVET and high school graduates

• Main Authors: Benzon, Sean Kirstin Elomina, Chan, Sabine Noelle Co, Dita, Joshua Tristan Navarro, Pastrana, Arianne Navarro
• Format: text
• Language: English
• Published: Animo Repository 2022
• Subjects: Vocational school graduates—Supply and demand; High school graduates—Supply and demand; Labor market—Philippines; Economics; Labor Economics
• Online Access: https://animorepository.dlsu.edu.ph/etdb_econ/30; https://animorepository.dlsu.edu.ph/cgi/viewcontent.cgi?article=1039&context=etdb_econ
• Institution: De La Salle University

This study investigated the labor market differentials existing between Post-Secondary TVET graduates and High School graduates. This was done by investigating the direction and magnitude of a TVET degree’s effect on monthly wage and probability of employment through Naive Bayesian Regression and Propensity Score Matching; moreover, investigation of endogenous attributes to gauge what factors cause the differential, through Blinder-Oaxaca decomposition, was also performed. A sample from the STEP Skills Household Measurement 2015-2016 collected by the World Bank was utilized. The empirical methods unanimously agreed that TVET graduates earn a lower monthly wage than high school graduates; the result on employment likelihood was unanimous for Naive Bayesian Regression and Propensity Score Matching, which is that TVET graduates experience a higher probability of employment compared to high school graduates. However the Blinder-Oaxaca decomposition exhibited a converse result, such that high school graduates enjoy a higher employment probability compared to their TVET counterparts. The findings affirm the notion that a TVET degree does not necessarily result in improved labor market outcomes, and indicate that endogenous and exogenous factors are far more influential in securing improvements in wage and employment probability.