Vocational Education and work force demands in Indonesia

Dean Yulindra Affandi, Sri Rahayu, Rahmi Setiawati, Devie Rahmawati

Research output: Contribution to conferencePaperpeer-review


This paper examines the differentiated outcomes of vocational and general secondary academic education, particularly in terms of employment opportunities, labor market earnings, and access to tertiary education in Indonesia. With data from a panel of two waves of the Indonesia Family Life Survey in 2005 and 2010, the paper tracks a cohort of high school students in 2005 to examine their schooling and employment status in 2010. The findings demonstrate that: (1) attendance at vocational secondary schools results in neither market advantage nor disadvantage in terms of employment opportunities and/or earnings premium; (2) attendance at vocational schools leads to significantly lower academic achievement as measured by national test scores; and (3) There is no stigma attached to attendance at vocational schools that results in a disadvantage in access to tertiary education; rather, it is the lower academic achievement associated with attendance at vocational school that lowers the likelihood of entering college. The empirical approach of this paper addresses two limitations of the existing literature in this area. First, it considers the observation censoring issue due to college entry when evaluating labor market outcomes of secondary school graduates. Second, using an instrumental variable approach, the paper also treats endogeneity of household choice of vocational versus academic track of secondary education, teasing out the net effect of secondary school choice on labor market and schooling outcomes.
Original languageIndonesian
Publication statusPublished - 2018
EventProsiding Seminar Nasional Pendidikan Tinggi Vokasi Indonesia - ID, Bengkulu, Indonesia
Duration: 1 Jan 2018 → …


ConferenceProsiding Seminar Nasional Pendidikan Tinggi Vokasi Indonesia
Period1/01/18 → …

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