infonet-economy

Using the Swiss Graduate Survey, we study how the type of tertiary education an individual chooses (i.e., vocational or academic) influences career entry and labor market success after graduation. Our results show that vocational graduates face less risky career entry than academic graduates. Considering endogenous educational choice by using parental education as an instrument, we find higher returns for vocational tertiary education. In the longer term, initial educational type effects disappear, so vocational and academic graduates face the same risk and return. Therefore, career entry for vocational graduates compares favorably to that of academic graduates, while career success for both educational types equalizes over time.