The Labor Market Outcomes of Formal Vocational Education and Training: A Meta- Analysis

Abstract

This meta-analysis empirically synthesizes the impact of formal Vocational Education and Training (VET) on labor market outcomes using studies published between 1990 and 2022, employing a causal counterfactual evaluation design. To summarize effect sizes across studies, we employ the standardized mean difference Hedges' g for all outcomes, and employment probability and earnings/wages for a subset of studies. We use Robust Variance Estimation (RVE) to account for dependent effect sizes within and between studies. Based on a sample of 39 studies, the impact of VET versus general education on all labor market outcomes is positive but small (Hedges' g = 0.021***) and tends to zero over time, while its impact on employment is minor (4.8%***) and not statistically significant for earnings/wages. Studies with more rigorous evaluation designs report lower impacts. Conversely, based on a sample of 27 studies, the impact of VET versus an unrestricted control group is medium (Hedges' g = 0.071***), depicting significant boosts in employment (11.7%***) and earnings/wages (37.6%***).