Universiteit van Amsterdam Research Master Social Sciences A Vocational Decline? The Influence of School-to-work Linkage on Employment over the Life-course Research Master’s Thesis Andrea Forster Amsterdam, 31 July 2015 Student number: 10635114 Contact: [email protected] Supervisor: dr. Thijs Bol Second reader: prof. dr. Herman G. van de Werfhorst Abstract: Vocational education is seen as beneficial for the labour market allocation of young people. However, recent literature points at disadvantages later in the life-course. This paper re-evaluates the findings for the Netherlands with an improved measure of vocationality. For this purpose, a gradual measure for the linkage strength between education and occupation is introduced and subsequently used to predict labour market outcomes over the life-course. We can show that for the Dutch labour market linkage strength is a better predictor for employment probabilities than previous measures of vocational education. In the life-course analysis we find that the benefits of vocationality disappear later in the career. However, while employment probabilities converge, vocational education never turns into a penalty. Key words: Vocational Education, Labour Market, Segregation Indices, Netherlands Contents 1 Introduction 1 2 Vocational Education and Labour Market Outcomes 2.1 School-to-work Transition . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 Life-course . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 5 3 The Measurement of Vocationality 3.1 The Traditional Dichotomy . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 Beyond the Dichotomy: Linkage Strength . . . . . . . . . . . . . . . . . . . 6 6 8 4 Data and Methods 4.1 Data and Sub-samples . . . . . . . . 4.2 Determination of Linkage Strength . 4.3 Operationalization of Other Variables 4.4 Logistic Regression Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 9 10 14 16 5 Results 18 5.1 Descriptive Results: Heterogeneity of Linkage Strength . . . . . . . . . . . 18 5.2 School-to-work Transition . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 5.3 Life-course . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 6 Discussion 29 References 32 Appendices A The Educational System in the Netherlands . . . . . . . . . . . . . . . B Analysis of Sparse-cell Bias . . . . . . . . . . . . . . . . . . . . . . . . C Segregation Analysis: List of Educational and Occupational Categories D KHB Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 36 37 40 47 . . . . . . . . 1 Introduction The preparation of youth for the labour market is a key responsibility of the educational system and education plays a major role in the distribution of life chances through this allocative function. A central feature of the educational system for labour market allocation of graduates is its orientation towards vocational education. This form of occupationally oriented training has been praised by policy makers as an efficient way of lowering youth unemployment (OECD and ILO, 2014; Biavaschi et al., 2013). Most research has confirmed these benefits of vocational education for the transition from school to the first job (Shavit and Müller, 1998; Müller and Gangl, 2003; Breen, 2005). The main mechanism behind the effect of vocational education is that those programmes convey occupation specific content to their students that is immediately valuable for employers (Arum and Shavit, 1995). However, the effect of occupation specific skills might vary over the life-course. This makes it important to also look beyond the immediate transition from school to the first job. Indeed, a recent study by Hanushek et al. (2011) finds that initial employment benefits turn into disadvantages if one considers the whole labour market career up to the retirement age. The explanation behind this phenomenon, which they term life-course vocational decline, is that specific occupational skills become obsolete faster than general skills later in the career if they are not constantly updated by on-the-job training. Both, the argument about the school-to-work transition and the hypothesis about life-course vocational decline identify the occupational specificity of an educational programme as the mechanism through which labour market outcomes are determined. However, none of these lines of research measure this specificity directly. Instead, it is simply assumed that vocationality is a dichotomy: vocational education leads to high and general education to low specificity. It is much more likely, however, that the vocationality of educational programmes is gradual. Programmes which are subsumed under the same category (vocational or general) might vary in their degree of specificity. Some vocational programmes, like car mechanic training, might indeed convey very specific occupational skills, whereas for instance commerce oriented programmes might in fact rather teach general skills even though they are classified as vocational programmes. The same seems to be true for general education if for example the study of medicine is compared to social sciences – two programmes labelled as general but with a very different degree of occupational specificity. If the occupational specificity is indeed the mechanism through which education gains a labour market value or leads to life-course decline, not just the categorization as vocational or general should matter for this outcome but also the variation of specificity within these broad categories. Therefore, it remains unclear whether the dichotomous measure 1 of vocational education used in previous studies is suited to test arguments about the consequences of vocationality. We will contribute to the literature in two ways. First, the life-course hypothesis of vocational decline will be re-evaluated. So far, the decline has been investigated with comparative survey data that contain only small samples for individual countries. Using much more detailed data from the Dutch Labour Force Survey, we will test the hypothesis for a country with high enrolment in very specific vocational programmes in which strong life-course effects are expected. Thereby, employment probabilities as the most fundamental labour market outcome will be in focus. Second, we will perform this test of vocational decline with an improved measure for vocationality. Instead of dichotomizing educational programmes in vocational and general, this measure captures the vocationality of educational programmes directly. Following a recent approach by DiPrete et al. (2015), the strength of linkage between educational programmes and occupational positions will be utilized to measure the occupational specificity of single educational programmes. Thereby, not only levels of education but also fields of study can be taken into account. From these two contributions, the subsequent research question follows: Do graduates from educational programmes that link more strongly to certain occupational positions experience an initial advantage and subsequent disadvantage in employment probabilities compared to graduates from programmes with lower linkage? Answers to this question are relevant to public debates about the value of vocational content of education. The generally positive evaluation of vocational education in the school-to-work transition leads to calls for more vocational elements in education and a tighter coupling of school and work place whenever youth unemployment is on the rise. However, such policies are only advisable if a highly occupation specific education does not revert into a disadvantage over the life-course. To investigate the research question, first, we will introduce the mentioned measure of linkage strength. With this measure, we will be able to display the heterogeneity in occupational specificity within programmes categorized as vocational and general. Second, an analysis of the school-to-work transition will show that the new vocationality measure indeed explains labour market allocation better than the traditional dichotomous measure. Third, we will show that a high linkage strength leads to an initial advantage and subsequent decline in advantage of employment probabilities over the life-course. However, late disadvantages do not have the potential of outweighing early employment benefits. Therefore, in the Netherlands, the life-course pattern can be seen as a convergence of employment probabilities rather than a decline. 2 2 Vocational Education and Labour Market Outcomes In the following section, theoretical arguments about labour market outcomes of vocational education are presented for (1) the school-to-work transition and (2) the further labour market career. 2.1 School-to-work Transition As already mentioned, vocational education is commonly seen as advantageous for the labour market allocation of graduates (Shavit and Müller, 1998; Müller and Gangl, 2003; Breen, 2005). This advantage seems to be due to the occupational specificity of this type of educational programmes. There are several mechanisms through which educational programmes become occupation specific and through which the benefits of vocational education may operate. The explanation which is most often used by research relates the mechanism through which jobs are obtained directly to the type of skills taught in the educational programme. Vocational degrees are beneficial for obtaining employment because of the specific skills they entail (Arum and Shavit, 1995; Scherer, 2005; Wolbers, 2007; Van de Werfhorst, 2011). They prepare students for a very narrow set of occupations. It is very likely that, for example, someone who learns the narrow technical skills to repair cars, will most often be working in an occupational category where these skills are of use. Vocational graduates with such specific skills are immediately valuable for employers and do not require extensive on-the-job training. Another, related mechanism is that of signalling (Arum and Shavit, 1995). Vocational degrees signal high immediate productivity to possible employers. Here the focus is not on the skills which are actually obtained but rather on the productivity which an educational title signals to employers. These two mechanisms also imply that vocational education is only beneficial if it conveys narrow occupation-specific rather than broad practical skills. Broad vocational skills serve more as a safety net for low achievers and do not have the same benefits as occupation-specific training. They are above all a signal of low ability and the skills are not specific enough to replace on-the-job training (Shavit and Müller, 1998). Next to skill specificity and signalling, vocational training also comes along with stronger institutional and/or personal networks between graduates and employers which facilitate the transition from school to work (Rosenbaum et al., 1990). Often, employers are directly involved in the vocational education system. Then, not the skills obtained in those programmes are important for hiring but the information that employers gain about graduates already during the training period. Yet another reason why the occupational specificity of educational programmes might be high and the linkage to the labour market close, has to do with credentialism (Bills, 3 1988) and occupational closure (Weeden, 2002; Bol and Weeden, 2014). One form of closure that directly influences linkage strength between education and occupation is licensure. Licenses restrict the access to a occupational position by requiring a formal certificate that allows its practice (Bol, 2014). If a specific educational degree is required to access a certain position on the labour market, linkage of this educational programme will necessarily be high independent of the skills taught in it. Comparative research has shown that in countries with a high proportion of vocational education, labour market entry is indeed smoother (Shavit and Müller, 1998; Van der Velden and Wolbers, 2003; Breen, 2005; Wolbers, 2007). However, some scholars doubt these transition benefits for vocationally trained graduates. While some studies find that vocational graduates indeed experience advantages compared to their peers with general training (Shavit and Müller, 1998; Scherer, 2005), other studies conclude that the transition benefits also extend to other graduates in countries where vocational education is widespread (Iannelli and Raffe, 2007; Wolbers, 2007). If following the latter results, one might conclude that a differentiation of the educational system in different school tracks and not an individual’s enrolment in a vocational programme is responsible for those beneficial outcomes: the smooth labour market entry is a general benefit for everyone in such stratified educational systems and is not related to the occupational specificity of the educational programme (Andersen and Van de Werfhorst, 2010; Levels et al., 2014). So far, these results do not yet allow a definite conclusion about whether vocational education is beneficial for the individual in the transition from school to work, and through which mechanism these benefits on the individual level operate if they exist. We reevaluate the school-to-work transition but replace the dichotomous measure for vocational education that is used by previous studies, with a direct measure of occupational specificity for single educational programmes. With this more precise measure of vocationality, we can show that it is indeed the occupational specificity of educational programmes that accounts for these transition benefits. One country with a strong vocational system in which beneficial individual level effects are expected, is the Netherlands (Shavit and Müller, 1998). Indeed, De Graaf and Ultee (1998) find lower unemployment rates for vocational graduates compared to generally trained workers in the Netherlands. Following the argument about the individual benefits of vocational education for labour market allocation, we assume that, in the Netherlands, occupational specificity has a positive influence on employment probabilities in the school-to-work transition. This specificity is measured by the linkage strength between educational programmes and occupations, which leads us to the following hypotheses: H1.1: The linkage strength of an education to a specific occupation has a positive influence on employment probabilities early in the career. 4 H1.2: The linkage strength is a better predictor of employment probabilities than a dichotomous measure of vocational education. If it is controlled for linkage strength, the dichotomous measure does not significantly add to the prediction of employment. 2.2 Life-course In addition to the question whether vocational education is beneficial in the transition from school to the first job, it is relevant to study how workers fare in the rest of their career. Even if vocational programmes are beneficial for youth in the school-to-work transition, those advantages might decline over the life course (Hanushek et al., 2011). However, vocational education can only be evaluated positively if the initial benefits in labour market allocation do not turn into disadvantages for subsequent employment. The expected mechanism behind this decline is the development and utilization of specific skills in the long run. In the course of technological innovations the need for skills in the labour market changes rapidly, and technical skills quickly become obsolete (Katz and Murphy, 1992). On-the-job training is required to keep the narrow occupational skills of vocational workers updated over the course of their labour market career. However, employers are used to obtain fully trained workers from the educational system and they are not prepared to invest much in further training. This is especially true in countries where vocational education is widespread (Hanushek et al., 2011). This lack of training leads to a deterioration of vocational skills and to a decline of employment probabilities with increasing age particularly in those countries. In general, Hanushek et al. (2011) find support for their hypothesis. Initial benefits of vocational education are reversed at a later point in the labour market career. The authors report that at an age of 16, vocational graduates are 7 percentage points more likely to be employed than individuals with general education but that this gap narrows subsequently and reverses into a disadvantage at the age of 50. Similarly, results for Austria by Vogtenhuber (2014) indicate that subsequent transitions in the labour market after the first entrance are less positive for vocational graduates than for generally educated individuals. However, his is unable to capture this effect fully with its sample of young adults. We evaluate the decline hypothesis in more detail for the Netherlands. While Hanushek et al. (2011) focus on a comparative perspective and, thereby, necessarily apply less detail to the study of single countries, we use very detailed micro-level data which allow us to test the claims more thoroughly for one country. The Netherlands is a country with a strong vocational system and high enrolment in a vast number of specific training programmes for which strong decline effects are expected. However, Hanushek et al. (2011) find no decline for the Netherlands. This makes the Netherlands an interesting case for further investigation with more detailed data. Again, we will use the linkage strength measure 5 as a more precise way of operationalizing occupational specificity. Following the decline argument, the subsequent hypothesis is made: H2: The positive effect of linkage strength on employment probability declines with increasing age and turns into a penalty late in the career. 3 The Measurement of Vocationality The hypotheses formulated in the previous section assume the occupational specificity to be the mechanism through which education leads to beneficial labour market outcomes in the school-to-work transition and to a subsequent decline over the labour market career. To evaluate these assumptions, a measurement is necessary that captures the occupational specificity of education. In this section we will discuss how previous research measured if an educational programme was vocational or not, what drawbacks arise from this measurement and how the operationalization can be improved by using a gradual measure of occupational specificity. 3.1 The Traditional Dichotomy It is difficult to find a definition of vocationality that is universally valid as vocational education takes various forms in different countries: vocational programmes vary from firm-based training, to dual apprenticeships, to education in specialized schools and vocational curricula in regular high schools. However, in most cases, scholars identify vocational education programmes by the specificity of skills which they convey or by the closeness of their association with certain labour market positions. The differentiation between general and specific skills originates from classical work on human capital (Becker, 1964): specific skills are those which are immediately valuable within one occupation or even only in one firm, general skills in contrast are broad and applicable in a variety of contexts. An application of the concept of specific and general skills to the educational system appears in the literature on different varieties of capitalism. According to Estevez-Abe et al. (2001), two types of skills are conveyed by the educational system: vocational education teaches mostly industry-specific skills which lead to specific occupations but are not tied to certain firms. General, mostly university-bound, tracks convey general skills. Similarly, Shavit and Müller (1998) distinguish general skills from specific vocational skills in their comparative work on the school-to-work transition. They further differentiate the specificity of skills obtained in programmes labelled as vocational in broad vocational skills and specific vocational skills. Broad vocational skills are entirely obtained in schools that most often serve as a safety net for low-achievers and which do not teach the skills for a specific occupation but rather general practical skills that can be applied in different occupations. In contrast, specific 6 vocational skills are taught either in a dual system with firm- and school-based training elements (e.g.in Germany) or in specialized schools (e.g.in the Netherlands) that offer a wide array of different very specialized training programmes for detailed occupational titles. Degrees from such programmes serve as a strong productivity signal on the labour market and employers are often directly involved in this specialized training. In their work, Shavit and Müller (1998) use the Comparative Analysis of Social Mobility in Industrial Nations (CASMIN) educational classification (Müller et al., 1989; Erikson and Goldthorpe, 1992). This is one of the major educational classifications used in comparative research and it reflects the separation of general and specific skills which are taught in academic and vocational programmes respectively. CASMIN differentiates educational degrees in hierarchical levels and also distinguishes the orientation of a programme towards general or vocational skills within levels (Müller et al., 1989). The original version of the CASMIN classification, which was developed in the 1970s, includes vocational degrees on elementary and intermediate educational levels. It acknowledges the difficulties caused by the high diversity of educational programmes in different countries, especially on the intermediate level, but nevertheless decides for a dichotomous classification of vocational and general programmes (König et al., 1988). A revision of the CASMIN scheme at the end of the 1990s extends the classification of vocational programmes to the tertiary education level in reaction to the development of professional degrees in the higher education sector (Brauns and Steinmann, 1997; Brauns et al., 2003). The most common alternative to the CASMIN scheme, the International Standard Classification of Education (ISCED), both in the 1997 and the 2011 version, likewise categorizes education in levels and fields of education and, additionally, applies a dichotomous separation of vocational and general education on the secondary and tertiary levels of education. It defines vocational education as all those programmes “that are designed for learners to acquire the knowledge, skills and competencies specific to a particular occupation, trade, or class of occupations or trades. Such programmes may have workbased components (e.g.apprenticeships, dual-system education programmes). Successful completion of such programmes leads to labour market-relevant, vocational qualifications” (UNESCO Institute for Statistics, 2012, p.14). In contrast, general education programmes are defined “to develop learners’ general knowledge, skills and competencies, as well as literacy and numeracy skills” (UNESCO Institute for Statistics, 2012, p.14). Virtually all research in the field of education and comparative stratification uses these two classifications for vocational and general education. In other words, all previous attempts of defining vocationality of educational programmes use a more or less dichotomous classification that associates vocational education with specific and general education with general skills. 7 3.2 Beyond the Dichotomy: Linkage Strength All definitions outlined in the previous section are based on the presumably high occupational specificity in vocational education. However, none of the classifications measures this specificity directly. It is assumed that the programmes that are classified as vocational are more specific than programmes which are classified as general education. However, it is likely that not all programmes which are classified as vocational entail the exact same linkage to specific occupations. The same can be assumed for general educational programmes. This makes the dichotomous measure unsuitable for capturing the varying degree of vocationality of educational programmes. These shortcomings of the dichotomous approach to the measurement of vocationality, show the necessity of a measure that more directly captures the gradual nature of specificity entailed in detailed educational programmes. DiPrete et al. (2015) introduce a gradual measure of vocationality which is suitable for this endeavour. In their approach, vocationality is evaluated for single educational programmes instead of only the two categories of specific and general education. Thereby, not only educational levels are considered but also detailed educational fields of study. This makes it possible to assess heterogeneity in the occupational specificity of different fields within the same educational level. In this linkage approach, vocationality is measured as the strength with which an educational programme is linked to certain occupational positions. Linkage of an educational programme is high if a high number of graduates with this specific educational level and field combination are found in a narrow set of occupational positions. It is low if graduates are spread out over a high number of different occupations. For example, if most university students of medicine become physicians, linkage of the educational programme medicine is very high. In contrast, if students of management at an university spread out over a high number of different occupations, the linkage of this educational programme and thereby its occupational specificity is considered low. However, in the traditional way of operationalizing occupational specificity, students from both of these fields would be classified as having general education as they attended university. This example shows, that a gradual measurement of vocationality for single educational level-fields captures the actual specificity of an educational degree more precisely as it addresses all the variation in specificity between programmes. In this paper, an approach to the determination of this linkage strength will be chosen that is very similar to the one introduced by DiPrete et al. (2015). This measurement uses segregation indices (Reardon and Firebaugh, 2002; Mora and Ruiz-Castillo, 2011; Alonso-Villar and Del Rı́o, 2010; Frankel and Volij, 2011) which are based on the concept of entropy. In the context of measuring the association between educational level-fields and occupations, entropy reflects the amount of information that is gained about the 8 occupational position of an individual if their educational degree becomes known. As one’s education is expected to contain some information on someone’s occupation, entropy within an education should be lower than overall entropy. Knowing someone’s education should therefore lead to a reduction of entropy. The measure of association between education and occupation that will be used to determine the strength of linkage of an educational programme in this paper is based on this reduction of entropy. This linkage strength between an educational programme and an occupation then serves as an indicator of the vocationality of an educational programme. With this gradual linkage measure, the questions concerning education and labour market outcomes, which were presented in Section 2, can be re-evaluated. 4 Data and Methods 4.1 Data and Sub-samples The Dutch Labour Force Survey (Enquête Beroepsbevolking, EBB) which can be accessed via Statistics Netherlands (Centraal Bureau voor de Statistiek, CBS) offers high quality micro-level data that can be used for the determination of linkage between detailed educational programmes and occupations. Furthermore, it provides sufficient information to investigate labour market outcomes for people of different age. The survey is administered as a rotating panel study of households: each month, a new representative sample of households in the Netherlands is drawn. Per household up to eight persons from the age of 15 can participate in the survey. Each respondent in the sample is then approached for five consecutive interviews over a period of twelve months. We use the EBB rounds from 2010 to 2012. To achieve a sample size capable of precisely measuring linkage strength for a high number of educations and occupations, observations for these three years are pooled for the analyses. We assume that general labour market structures in these three years are comparable enough to do so and, additionally, include fixed effects for the survey year in each model. Only one observation per person is selected for the analysis.1 Different restrictions are made to the sample for the calculation of the linkage measure and for the analysis of employment probabilities. First, for the determination of linkage strength all respondents are included who have complete data on their highest educational degree and on their current labour market position and who are not enrolled in education at the time of the interview.2 This implies 1 The first interview with complete data is selected for each respondent. Usually the first interview took place in wave 1 of the survey. However, if in that interview data of the individual was missing on one of the variables of interest, the first wave with complete data was used. Some individuals participated in the survey in two of the years. In this case, the first complete wave of the first year was selected. 2 DiPrete et al. (2015) additionally carry out the determination of linkage strength with a smaller sample of young respondents up to 35 years of age. This procedure captures more precisely the actual school-to-first-job linkage than a calculation of linkage with the whole sample. However, they find no 9 that the determination of linkage strength is only carried out for individuals who are currently in employment as otherwise, no occupational data is available for them. Further research is necessary to investigate the implications of this selection. This is, however, beyond the scope of the present paper. The final sample has a size of 193,445 respondents. Second, labour market outcomes are investigated for all respondents no matter their employment status. Again, respondents are excluded who are in education at the time of the survey as the focus of interest lies on people who have left full-time education and are either active in the labour market or out of employment for other reasons than education. For the investigation of the school-to-work transition, the sample is restricted to respondents in the age of 16 to 35, following similar restrictions in previous research on the topic (e.g. Shavit and Müller, 1998; Wolbers, 2007; Vogtenhuber, 2014). The final sample for this analysis has a size of 60,052 respondents with 29,982 being male and 30,070 being female. For the life-course outcomes all respondents in a typical age of labour market activity from 16 to 65 are selected. This again follows previous research on life-course outcomes (Hanushek et al., 2011). This selection leads to a final sample of 216,004 respondents, whereof 107,047 are men and 108,957 are women. 4.2 Determination of Linkage Strength Statistical Approach As mentioned in Section 3.2, the measurement of linkage strength is based on segregation indices. For this purpose, DiPrete et al. (2015) use one available segregation measure, the Mutual Information Index (M).3 The M index is an aggregated measure for the vocationality of a national educational system but it is composed of the weighted sum4 of the linkage of all single education programmes to occupations within this educational system. This linkage measure for the single educational and occupational categories is called local segregation. The local segregation (Mg ) for each educational programme can be expressed by equation 1. Mg = X pj|g ln j pj|g pj (1) significant differences between the two measures for linkage strength. The larger sample is better capable of including a high number of educational programmes as it is less subjected to sparse categories and is therefore preferred. 3 Compared to previous attempts to measure occupational specificity with another segregation index – the GINI index (Allen et al., 2000; Vogtenhuber, 2014) – the M index has the advantage of being strongly decomposable. This means that it can be used to measure the specificity of single educational programmes but it also can serve as an indicator of the specificity of national educational systems. 4 This means that if an educational programme is strongly linked to an occupation but its size is minor, it contributes less to the overall linkage in a country than if the category is bigger. For example, a PhD in medicine is highly specific but only a few individuals obtain this degree. Therefore, the contribution to national vocationality is low. 10 Thereby, pj|g is the conditional probability of being in a certain occupation j given one has the educational degree g. This value is multiplied by the logarithm of the ratio between the conditional probability pj|g and the unconditional probability pj of being in that specific occupation j across all educations. The result is then aggregated over all occupations to obtain the local segregation for one specific educational degree. In substantive terms, local segregation shows how much workers with a specific education are spread across occupations compared to all workers (DiPrete et al., 2015). A detailed discussion of the technical properties of the local segregation measure and the Mutual Information Index can be found in DiPrete et al. (2015) and Mora and Ruiz-Castillo (2011). As linkage strength is fundamentally about an association between education and occupation two variables are necessary for its calculation: detailed educational and occupational categories. Educational Categories In the EBB, educational degrees are measured by the Dutch educational classification (Standaard onderwijsindeling, SOI) which is oriented towards educational levels and fields in the Dutch educational system.5 Each educational programme is identified by a six-digit code in which the first two digits represent the level of education and the four remaining digits indicate the field of study. The two digits for the level of education are further separable into the main level (first digit) and a sub-level within the main level (second digit). The four digits for the field of education work in a similar way. We use only the first two digits for the field in order to avoid empty categories. By truncating the SOI code, a four-digit code for educational levels-and-fields is obtained: the first two-digits indicate the level and sub-level and are followed by another two digits which represent the major field plus one level of sub-fields. An issue when determining local segregation is the sample size in the single education cells. Sparse cells potentially inflate the local segregation value as single outliers have a high impact on the measure if categories are small. For instance, if there are only ten individuals in an educational category, two individuals which randomly end up in the same occupation already constitute a high proportion in such an educational category compared to a cell with several hundreds of observations. Therefore, the potential for segregation is much higher when there are only few individuals in a category. This issue decreases the reliability of the measure. DiPrete et al. (2015) conclude from an analysis of the aggregated M measure with differently sized samples that sample sizes of 100,000 or more are unproblematic for an analysis with a similar detail level of education as we use in this paper. As our sample meets this criterion, the problem is expected to be less 5 A short overview of the Dutch educational system is presented in Appendix A. 11 severe. However, DiPrete et al. (2015) only investigate the size of the total sample and not of the single educational categories. Even if the overall sample size is high, individual cells still can have a low number of observations. As this paper uses local segregation, the problem is more influential here than in the context of DiPrete et al. (2015) where the influence of single cells is weighted by their size when aggregating for the whole educational system. Therefore, an additional analysis with different cell sizes for the single educational categories is carried out to test the robustness of the linkage measure. This sparse-cell analysis is described in Appendix B in more detail. Although further investigation into the reliability of the linkage measure seems advisable, a minimum cell size of 120 observations can be chosen as appropriate for the analyses in this paper. By doing so, we use a slightly more conservative threshold than DiPrete et al. (2015) who used 100 observations as a minimum. Using this minimum cell size, the educational categories are prepared for the segregation analysis. Originally, the data contains 193,445 observations distributed over 351 level-fields of education. Educational level-field combinations with a cell size below 120 are identified. These cells are aggregated to a less detailed level by re-coding the fourth digit (the second field digit) into zero and thus setting the field to Other, only leaving information about the broader field. This re-coding results in 245 remaining level-fields. The procedure is repeated for categories which sill remain below the threshold so that the first field digit is also removed. This re-coding leads to a loss of detail but allows us to leave those observations in the sample without subjecting them to sparse-cell bias. Nevertheless, the interpretation of the Other categories is less intuitive than for the remaining level-fields as they are necessarily broader in their content. After this procedure, 194 level-fields of education are left. These are combinations of the levels and fields displayed Table 1: Educational Levels SOI Level Examples 10 Pre-primary education Basisschool group 1 and 2 20 Primary education (group 3 and higher) Basisschool group 3 to 8 31 Lower secondary education, low level Vocational courses without pre-requisites 32 Lower secondary education, intermediate level e.g. VMBO basic track 33 Lower secondary education, high level e.g. VMBO theoretical track, MAVO, HAVO/VWO years 1-3 41 Upper secondary education, low level e.g. MBO-2 42 Upper secondary education, intermediate level e.g. MBO-3, HAVO years 4-5 43 Upper secondary education, high level e.g. MBO-4, VWO years 4-6, pre-university courses 51 Higher education, first phase, low level e.g. short HBO or Associate Degrees 52 Higher education, first phase, intermediate level e.g. HBO Bachelor 53 Higher education, first phase, high level WO Bachelor 60 Higher education, second phase Master’s degrees HBO and WO 70 Higher education, third phase Ph.D., Doctorate Source: EBB 2010–2012 12 Table 2: Educational Fields 01 General education 47 Law, public administration, public order and security 10 Teachers 51 Mathematics, natural sciences 11 Teachers general education 52 Computer science 12 Teachers humanities, social sciences, communication and arts 60 Engineering 13 Teachers mathematics, natural sciences, agriculture 61 Engineering general 14 Teachers technical subjects and transport 62 Electrical engineering 15 Teachers economics, commercial, management and administration 63 Construction 16 Teachers (health) care, sports and other 64 Metal processing, vehicle and tool manufacturing 17 Teachers with differentiation 65 Process technology 20 Humanities, social sciences, communication and arts 66 Textile and leather processing, other 21 Languages 67 Engineering with differentiation 22 Humanities other 70 Agriculture and environment 23 Social sciences 71 Agriculture 24 Communication, media, information 72 Environment 25 Arts, expression 77 Agriculture and environment with differentiation 27 Humanities, social sciences, communication and arts with differentiation 80 (Health) care and community services 30 Economics, commercial, management and administration 81 Health care 31 Economics 82 Care, community services 32 Commercial 87 Health care and community services with differentiation 33 Management 90 Hotels, gastronomy, tourism, leisure, transport and logistics 34 Human resource management, personnel 91 Hotels, gastronomy, tourism and leisure 35 Administration, secretarial 92 Transport and logistics 37 Economics, commercial, management and administration with differentiation 97 Hotels, gastronomy, tourism, leisure, transport and logistics with differentiation 41 Law, public administration 98 Other 42 Public order, security Source: EBB 2010–2012 in Tables 1 and 2. The final list of all 194 combinations between levels and fields used for the calculation of linkage strength can be found in Appendix C. Occupational Categories Occupational information is available in the EBB via the International Standard Classification of Occupations (ISCO, 2008). ISCO codes are four-digit numbers which represent four levels of detail for occupational categories. The first digit of the ISCO code displays the major occupational group, the subsequent digits symbolize sub-fields within these major groups. We use the first three digits of the ISCO codes. This decision addresses the trade-off between including detailed information and having enough cases per occupation available for the analysis. Following previous research, occupations within the military (major ISCO group 0) are excluded from all analyses as those categories are hard to compare with civil occupations (Weeden, 2002; Bol and Weeden, 2014). This selection results 13 in 128 occupational categories for the segregation analysis. The list of all occupations used for the analysis is presented in Appendix C. Description of the Linkage Measure Linkage strength is calculated for each educational category (SOI four-digit code) using equation 1. Weights are applied to the analysis. The sampling weights in the EBB are rescaled in a way that they amount on average to a value of 1 per observation in the final sample and thus sum up to the total number of observations. This analysis results in an index for linkage strength which ranges from 0.178 to 3.494 with an overall mean of 1.280 (SD=0.533). The distribution of the linkage measure for the different level-fields of education is displayed in Figure 1. The measure is nearly normal distributed with a few outliers with very strong linkage.6 Figure 1: Distribution of the Linkage Measure 4.3 Operationalization of Other Variables For the investigation of labour market outcomes, a number of other variables have to be defined. Summary statistics of all variables for the more extensive sample of 16- to 65-year-old respondents are displayed in Table 3. The dependent variable is a dichotomous measure of the employment status of individuals. Similar to Hanushek et al. (2011), we do not distinguish between different reasons for not working. Respondents who are coded as 0 can be unemployed in a narrow sense but it is also possible that they have left the labour force for reasons like retirement, inability to work, etc.7 6 These outliers will be discussed in more detail in Section 5.1. Further studies could address a possible difference between being unemployed and being out of the labour force in the context of linkage strength. This is, however, beyond the scope of this paper. 7 14 The main independent variable is the linkage strength of each level-field combination that was obtained in the analyses described in Section 4.2. This linkage value for each educational programme is matched to the individuals for the analysis of labour market outcomes using their highest educational degree as identifier. Additionally, a dichotomous measure of vocational education is obtained to assess whether linkage strength predicts employment better. This variable is coded using the International Standard Classification of Education (ISCED, 1997) variable, that is available in the EBB next to the SOI educational classification. Programmes on the secondary Table 3: Descriptive Statistics for All Respondents Aged 16 to 65 (Full Regression Sample) Variable Employment status Values/Range 0–1 Men Women Obs. Mean SD Obs. Mean SD 107,047 0.807 0.394 108,957 0.680 0.467 employed 1 86,438 74,052 unemployed 0 20,609 34,905 Linkage strength 0.178 – 3.494 107,047 1.038 0.537 108,957 0.974 0.550 0–1 107,047 0.496 0.500 108,957 0.480 0.500 1 53,098 Vocational education vocational general Age Level of education 52,270 0 53,949 16 – 65 107,047 43.663 12.775 108,957 56,687 43.655 12.772 1–7 107,047 4.294 1.352 108,957 4.207 1.341 pre-primary 1 1,714 primary 2 6,551 7,473 lower secondary 3 21,721 23,625 upper secondary 4 40,044 41,366 post-secondary 5 3,375 3,259 tertiary 6 32,894 31,062 doctorate 7 749 370 107,047 108,957 Region 1 – 12 1,801 Groningen 1 3,597 3,651 Friesland 2 4,193 4,137 Drenthe 3 3,138 3,158 Overijssel 4 7,149 7,217 Flevoland 5 2,532 2,607 Gelderland 6 12,738 13,003 Utrecht 7 7,686 8,140 Noord-Holland 8 17,478 17,957 Zuid-Holland 9 22,667 23,081 Zeeland 10 2,539 2,586 Noord-Brabant 11 16,072 16,107 Limburg 7,258 7,312 2010 – 2012 107,047 108,957 2010 2010 49,572 50,163 2011 2011 32,552 33,327 2012 2012 24,923 25,467 Year 12 Source: EBB 2010–2012, own calculations Note: Sampling weights are applied 15 school level which are labelled as vocational or pre-vocational are coded as vocational (1) contrasted with general education (0). On the tertiary level, professional degrees are coded as vocational (1), all other degrees are coded as general (0). Age is one further important variable for the determination of employment across the labour market career. The age range is defined by the sample restrictions outlined in Section 4.1 for the different analyses. Following earlier research in the assessment of age and employment (e.g. Hanushek et al., 2011), a squared term of age is included to account for a possible non-linear relationship between age and employment probability. Additionally, as we are interested in the effect of occupational specificity net of the labour market consequences of different levels of education, we control for level of education. This allows us to look at the effect of linkage strength within educational levels. Employment probabilities differ considerably between different educational levels which makes it important to single out this level effect. Again the ISCED classification is used to obtain an ordinal variable of educational levels with 7 steps. Next to the educational level, it is also controlled for regional effects as the overall employment situation differs between provinces. Dummy variables for the 12 provinces in the Netherlands are included. Finally, fixed effects for the survey year are added to single out differences in employment in the three years of the EBB that were pooled for the analyses. A significantly higher proportion of the sample comes from the survey year 2010. This is due to the selection of the first interview with complete data. If respondents participated in several years, their data from 2010 was used. 4.4 Logistic Regression Models As the dependent variable is dichotomous, a binary logistic regression design is appropriate for the analyses. Analyses with different sub-samples are carried out separately for the school-to-work transition and for life-course outcomes. The specific models for those two sets of analyses are presented in the following two paragraphs: The first set of analyses for the school-to-work transition is done with the reduced age sample (16 to 35 years of age). The first model only contains the influence of linkage strength on employment. The second model replaces linkage strength with the traditional dichotomous measure of vocational education. In the third model, both measures – the dichotomous and the gradual – are added to determine whether linkage strength explains the effect of vocational education and if the latter predictor loses its significance. In all three models, it is controlled for age, age squared, educational level, region and survey year. Equation 2 shows the regression equation for the full model in which pi is the probability of being employed for individual i. ln pi = β0 + β1 linkagei + β2 voci + controls 1 − pi 16 (2) In a second set of models, the hypothesis of a vocational decline is investigated with the sample of respondents in the age from 16 to 65. The first model includes the linkage strength, age and age squared as main predictors and tests whether linkage strength has also a positive influence on employment in this full sample. The second model adds an interaction effect between age and linkage strength which is the main interest of the decline analysis and allows us to assess whether the effect of linkage on employment differs at different ages across the labour market career. This makes it possible to test the life-course hypothesis with the cross-sectional data sample. A negative interaction effect symbolizes a decline of employment probability for high linkage strength with increasing age and, thereby, would be an indicator for vocational decline. Again, it is controlled for level of education, region and survey year in all models. The logistic regression equation for the probability of being employed (pi ) for the full model is displayed in Equation 3. ln pi = β0 + β1 linkagei + β2 agei + β3 agei × linkagei + controls 1 − pi (3) The sampling weights provided by the EBB are used for all models. All analyses are done separately for men and women. The employment patterns and labour market careers of men and women differ considerably due to structural gender inequalities and still existing traditional gender roles. Therefore, it is expected that their life-course outcomes on the labour market differ in a way that is hard to control for in a joint analysis. Additionally, separate analyses may give interesting insights in differences between men and women when it comes to the influence of linkage strength on employment.8 Following recent discussions about the re-scaling of coefficients in logistic regression which influences the comparability of effect sizes across nested models, all models are additionally evaluated using the KHB method (Karlson and Holm, 2011; Karlson et al., 2012). The goal of the KHB method is to obtain differences in the effect of a variable between models without and with control variables that are unbiased by re-scaling effects (Breen et al., 2013). The results of the KHB analyses are presented in Appendix D. No substantively different conclusions arise from using the KHB method instead of regular logistic regression. Therefore, the main analysis is carried out with regular logistic regression. 8 The regression analyses are run with the full sample. Additionally, a set of regressions is carried out that excludes the observations of which education was re-coded to Other. No differences arise from these analyses. Therefore, all observations are used, also those who only have information on a broader field of study. 17 5 Results 5.1 Descriptive Results: Heterogeneity of Linkage Strength First, the obtained linkage strength for the different educational programmes is examined. Figure 2 shows the dichotomous vocational education variable on the y-axis and the strength of linkage on the x-axis. The dark grey circles symbolize the single level-fields of education. The light grey diamonds show the average linkage strength within the vocational and the general category. It can be seen that on average, programmes which are classified as general link even slightly stronger with a mean of 1.35 than vocational programmes with a mean of 1.29. However, a t-test shows that this difference is not significant (t=0.6837(164), p = 0.248, one-sided test). Interestingly, these descriptive results show that – on average – we do not find more strongly linking educational level-fields in the category that previous research defined as vocational. Figure 2: Distribution of Linkage Strength of Vocational and General Programmes9 9 Not all level-fields of education could be identified as clearly vocational or general. This can happen due to inconsistent response behaviour of individuals. Another reason could be that we do not use educational fields in full detail. Sub-fields of the two-digit fields could be vocational and general, making the broader category unidentifiable. To produce the figure, the vocationality of the level-fields is harmonized. Level-fields in which the mean of the individual values on the vocational variable is above 0.8 are classified as vocational (1). Those who have a mean value below 0.2 are classified as general (0). All cases with average between 0.2 and 0.8 are not included in the figure. This affects 4 level-fields. Additionally, 18 Furthermore, the distribution of the level-fields along the linkage strength axis is similar for both categories – vocational and general. The heterogeneity in linkage strength within vocational and general education is much higher than the difference between the two categories. This represents strong evidence that the vocationality of educational programmes is indeed gradual in nature and that a dichotomization omits this heterogeneity in linkage occupational specificity. A closer look at single categories shows that among the level-fields classified as general, there are more fields with very low linkage but also the highest linking field in the whole sample is classified as general. The two highest linking fields in the general category are Law, Public Administration (linkage = 3.172) and Health Care (4.494), both on the doctorate level. From the law programme, about 65 percent of students are found in ISCO category 261 (Legal Professionals) and another 10 percent become Regulatory Government Associate Professionals (ISCO 335). From the health care programme, 69 percent of students end up in ISCO category Medical Doctors (ISCO 221) with all other occupations staying far below 10 percent. Among the vocational programmes, Teachers for Technical Subjects and Transport (linkage = 3.141) on the level of MBO-2 and the field Transport and Logistics (3.230) on HBO level have the highest linkage values. Students from the MBO-2 programme most often enter ISCO categories 516 (Other Personal Service Workers) with 48 percent and 833 (Heavy Truck and Bus Drivers) with 10 percent. Graduates from HBO Transport and Logistics are most often found in ISCO 315 (Ship and Aircraft Controllers and Technicians) with 60 percent while all other occupations stay far below 10 percent. The weakest linking programmes are the general educational programmes in upper secondary education with HAVO (year 4-5) having a value of 0.178 and VWO (year 4-6) with a local segregation of 0.212. From these programmes, graduates spread out widely across occupations with no occupation receiving more than 6 percent of graduates. Among the vocational programmes, the lowest linkage is attached to the MBO-4 programme Commerce with a value of 0.448 and to the VMBO (theoretical track) programme of Administration, Secretarial with a local segregation of 0.469. From the commerce programme about 20 percent of graduates become Shop Salespersons (ISCO 522). From the administration programme, 11 percent are found in the category of Other Clerical Support Workers (ISCO 411) and another 11 percent in the category of Shop Salespersons (ISCO 522). It can be seen that these percentages are much lower than for the highly linking educational level-fields. Like expected, commerce oriented programmes in vocational education show a rather low linkage whereas health and law oriented training in general education is associated all those level-fields which do not have information on the fourth-digit or are categorized as Other are excluded from the figure to avoid bias. This is the case for 24 categories. The data for the graph consists of the 166 remaining categories. 19 Figure 3: Average linkage strength within vocational and general programmes for different levels of education10 with a high linkage strength. These programmes do not at all fit the traditional classification of vocational vs. general. Additionally, it can be seen that the highly linking programmes in general education are found in very high levels of education (doctorate) whereas the low linking programmes in vocational education are rather observed at intermediate levels. To gain more insight in the interplay of level and fields in the contribution to linkage, Figure 3 explores linkage strength by educational level and by vocational versus general. In pre-primary and primary education as well as on doctorate level, only programmes exist which are classified as general. Post-secondary education on the other hand is fully classified as vocational. All other levels of education offer both, vocational and general programmes. The average linkage strength is rather low for primary (linkage = 0.561), lower-secondary general (0.627) and upper-secondary general education (0.226). Preprimary education has a somewhat higher average linkage with 0.902. This is probably due to the limited occupational options for individuals with such a low level of formal education. In contrast, vocational programmes on secondary school level have a rather high average linkage strength with 1.062 for lower and 1.318 for upper secondary educa10 Again the harmonized variable for vocational is used as described for Figure 2. For the educational levels a similar problem is apparent as the level information is taken from the ISCED classification while linkage strength is oriented towards SOI categories. The level-fields are related to educational levels by taking the mean level for each level-field and harmonizing it towards the closest full number for the level. 20 tion. In post-secondary education linkage of vocational programmes is again low with an average of 0.485. On tertiary level of education, the average linkage strength for general education programmes (1.428 on tertiary and 1.488 on doctorate level) is almost as high as for vocational programmes (1.711). In general, average linkage strength is higher on these higher levels of education in both categories – vocational and general – compared to lower levels of education. Much of the heterogeneity in linkage strength among general education programmes seems to originate from higher education. This finding is interesting as many studies on vocational education focus especially on the secondary school level and come to the apparently correct conclusion for this level that vocational programmes are more specific. However, this conclusion might be driven by the neglect of the tertiary level of education. If all levels of education are considered, the heterogeneity of occupational specificity becomes much clearer. 5.2 School-to-work Transition In a first set of regression models, it is evaluated if linkage strength explains employment probabilities in the school-to-work transition better than the dichotomous vocational education measure (hypothesis 1). For this analysis, only respondents with an age from 16 to 35 who are not currently enrolled in education are included to capture early labour market experiences. Linkage strength is standardized within the samples for men and women to facilitate comparisons across models. Age is centred at 16 to make interpretation more accessible. The results for men and women are presented in Table 4. The sample for men consists of 29,982 observations, the sample for women contains 30,070 observations. In the first model, only the standardized linkage strength is included in addition to the control variables, level of education, age, region and survey year. The coefficient is positive and significant for both men and women. This is in line with hypothesis 1.1. An increase of linkage strength by one standard deviation multiplies the odds of being employed with e0.154 = 1.166 for men and e0.170 = 1.185 for women. The effect for men and women is comparable in size, although slightly higher for women. Among the control variables it can be noted that increasing levels of education consistently lead to higher employment probabilities. An exception is the highest level (doctorate) which seems not to improve labour market outcomes. This might be due to the young age of the respondents in this sample in which doctorates have only been obtained very recently. Age takes a curvilinear pattern with the coefficient for age being positive and the coefficient for age squared being negative. Employment probabilities increase with age but this increase stagnates at higher ages. In the second model, the traditional dichotomous measure for vocationality is used instead of the linkage strength. The coefficient here is also positive and significant for men and women. Being in a vocational in contrast to a general programme, leads to the 21 Table 4: Logistic Regressions for the School-to-work Transition (16–35 Years) with Employment Probability as Dependent Variable Men Model 1 Linkage Strength (standardized) Model 3 Model 1 0.154*** 0.138*** 0.170*** 0.152*** (0.024) (0.033) (0.024) (0.029) Vocational (ref=general) Model 2 Women Model 2 Model 3 0.243*** 0.051 0.222*** 0.070 (0.050) (0.069) (0.048) (0.057) 0.560*** 0.463*** 0.549*** 0.624*** 0.521*** 0.613*** (0.159) (0.159) (0.160) (0.157) (0.156) (0.157) 1.236*** 1.050*** 1.202*** 1.348*** 1.147*** 1.302*** (0.145) (0.148) (0.153) (0.143) (0.145) (0.148) upper secondary 1.767*** 1.587*** 1.729*** 2.377*** 2.190*** 2.322*** (0.144) (0.148) (0.152) (0.141) (0.146) (0.148) post secondary 2.024*** 1.816*** 1.977*** 2.657*** 2.468*** 2.591*** (0.233) (0.239) (0.240) (0.202) (0.207) (0.208) 2.105*** 2.194*** 2.113*** 2.970*** 3.090*** 2.980*** (0.149) (0.148) (0.150) (0.145) (0.144) (0.145) 1.607*** 1.893*** 1.635*** 2.292*** 2.698*** 2.233*** (0.395) (0.393) (0.395) (0.351) (0.341) (0.349) Age (centred at 16) 0.204*** 0.206*** 0.203*** 0.068*** 0.070*** 0.066*** (0.014) (0.014) (0.014) (0.013) (0.013) (0.013) Age squared (centred at 16) -0.005*** -0.005*** -0.005*** -0.003*** -0.003*** -0.003*** (0.001) (0.001) (0.001) (0.001) (0.001) (0.001) -1.572*** -1.601*** -1.568*** -1.451*** -1.486*** -1.441*** (0.176) (0.176) (0.176) (0.171) (0.171) (0.172) yes yes yes yes yes yes Level of Education (ref=pre-primary) primary lower secondary tertiary doctorate Constant Region fixed effects Year fixed effects N Pseudo2 BIC yes yes yes yes yes yes 29,982 29,982 29,982 30,070 30,070 30,070 0.114 0.113 0.114 0.110 0.109 0.110 991,695 992,855 991,668 1,214,902 1,215,745 1,214,809 Source: EBB 2010–2012, own calculations Note: Logged odds are displayed, standard errors in parentheses. Sampling weights are applied. Significance levels: * p < 0.05, ** p < 0.01, *** p < 0.001 odds of employment being e0.243 = 1.275 times higher for men and e0.222 = 1.249 times higher for women. This effect is that large since it is the maximum effect of going from general to vocational while the effect of linkage strength presented above only presents the effect of an increase by one standard deviation. Finally, both predictors, linkage strength and the vocational dummy are included in a third model. The coefficient for linkage strength is still positive and significant at a similar order of magnitude as before. A one standard deviation increase of linkage strength multiplies the odds of being employed for men with e0.138 = 1.148 and for women with e0.152 = 1.164. The coefficient for vocational education is now insignificant and much smaller (0.051 for men and 0.070 for women). This indicates in line with hypothesis 1.2 22 that the effect of vocational education on employment probabilities explained by the level of linkage strength of educational programmes. With the linkage strength measure we capture more relevant variance in employment probabilities than with the simple dummy. Linkage strength improves the explanation of labour market outcomes. Also a look at pseudo R2 shows that the dichotomous vocational variable does not add to the model fit. For men, the pseudo R2 is 0.114 in the first and third model and is slightly lower with 0.113 in the model in which only the dichotomous vocational variable is included. For women, a similar pattern is visible with a pseudo R2 of 0.110 in the first and third model and a value of 0.109 in the second model. All models are additionally assessed with the KHB technique. The results of this analysis are presented in Appendix D. The analysis shows that the coefficients for linkage strength and the vocational dummy are slightly over-estimated when only one variable is entered and when no correction for re-scaling is applied. However, the changes in the size of the coefficients are minor and do not lead to substantively different conclusions. The results of the regular logistic regression are robust in this respect. To illustrate the substantive meaning of the results, a graph with predicted probabilities of being employed for different levels of linkage strength and mean levels of all other variables is presented in Figure 4. Predicted employment probabilities are unsurprisingly high in this sample of young people who are not currently in education. At a low linkage strength of about 0.2, the predicted employment probability is at 86.7 percent for men and 78.6 percent for women. At an average level of linkage strength of about 1.2, the predicted employment probability for men has increased to 89.3 percent and that for women to 82.8 percent. At a high level of linkage strength of 2.4, the predicted employment probability for men is 92 percent and that for women 87 percent. These increases show that the linkage strength of one’s educational level-field has a considerable influence on employment in this young sample. From low to high values of linkage strength, the predicted employment probability of men rises by 5.3 percentage points and that of women even by 10.3 percentage points. It is interesting to see that linkage has a higher influence for women than for men. It is known that men and women are highly segregated in different occupations on the labour market (Alonso-Villar et al., 2012; Hegewisch and Hartmann, 2014) and linkage may work quite differently in those occupations. It might also well be, that the linkage strength of women and men differs – a possibility which exploration is beyond the scope of this paper. 11 The unstandardized measure of linkage strength is used for these graphs. The graph shows predicted probabilities for the 1st to the 99th percentile of linkage strength and excludes the outliers with extreme linkage strength. 23 Figure 4: Predicted Probabilities of Being Employed at Different Levels of Linkage Strength11 (a) Men (b) Women 24 5.3 Life-course A second set of regression models evaluates the employment probabilities of individuals with different educational level-fields over their labour market career (hypothesis 2). In these models, all respondents from 16 to 65 who are not in education are included. Linkage strength is again standardized within samples and age centred at 16. Again separate models for men and women are presented in Table 5. The number of observations in the sample is 107,047 for men and 108,957 for women. The first model includes age, age squared and the linkage strength measure next to a number of controls (educational level, region and survey year). Linkage strength is again positive and significant for both, men and women. Also in the more extended age sample Table 5: Logistic Regressions for the Life-course (16-65 Years) with Employment Probabilities as Dependent Variable Men Linkage Strength (standardized) Age (centred at 16) Age squared (centered at 16) Women Model 1 Model 2 Model 1 Model 2 0.063*** 0.221*** 0.073*** 0.267*** (0.012) (0.026) (0.011) (0.024) 0.214*** 0.208*** 0.118*** 0.113*** (0.003) (0.003) (0.003) (0.003) -0.005*** -0.005*** -0.003*** -0.003*** (0.000) (0.000) (0.000) Linkage Strength × Age (0.000) -0.005*** -0.007*** (0.001) (0.001) Educational level (ref=pre-primary) primary 0.630*** (0.082) (0.081) (0.076) (0.076) lower secondary 1.178*** 1.183*** 1.406*** 1.400*** (0.076) (0.075) (0.072) (0.071) 1.582*** 1.584*** 2.095*** 2.099*** (0.075) (0.074) (0.071) (0.071) 1.651 1.643*** 2.300*** 2.314*** upper secondary post secondary tertiary doctorate Constant BIC 0.865*** (0.089) (0.089) (0.083) (0.083) 1.996*** 2.590*** 2.596*** (0.076) (0.076) (0.072) (0.072) 2.429*** 2.527*** 2.653*** 2.661*** (0.178) (0.182) (0.201) (0.211) -1.606*** -1.513*** -1.722*** -1.644*** (0.096) (0.097) (0.087) (0.088) yes yes yes yes Year fixed effects Pseudo R2 0.879*** 1.978*** Region fixed effects N 0.620*** yes yes yes yes 107,047 107,047 108,957 108,957 0.175 0.176 0.163 0.164 3,703,354 3,700,321 4,759,499 4,754,605 Source: EBB 2010–2012, own calculations Note: Logged odds, standard errors in parentheses. Sampling weights are applied. Significance levels: * p < 0.05, ** p < 0.01, *** p < 0.001 25 of 16 to 65, the linkage of an educational programme has a positive influence on the probability of being employed. The size of the coefficient is smaller than in the first set of regressions. Now, an increase of linkage strength by one standard deviation multiplies the odds of being employed with e0.063 = 1.065 for men and e0.073 = 1.076 for women. This result is intuitive as now also older respondents are included in the sample and we expect a less positive influence of linkage strength for them. The influence of age takes again a curvilinear pattern: The coefficient for age is positive and significant showing that an increase of age by one year leads to e0.214 = 1.239 times higher odds of being employed for men and e0.118 = 1.125 times higher odds for women. This increase is quite substantive. Interestingly, the increase for women is less strong indicating different career patterns for men and women. The squared term of age is negative and significant for both sexes. This shows that even if the employment probability increases with age, this increase slows down and reverses finally. The effect of level of education is consistently positive now. Higher levels lead to a higher employment probability. In contrast to the school-to-work analysis, the doctorate now shows an effect that is highly positive. It seems that individuals with a doctorate cannot develop their full labour market outcomes yet if only young respondents are considered. However, when the larger age sample (up to 65) is used, they have had enough time to find labour market positions. To assess whether life-course patterns of employment probabilities also depend on the level of linkage strength, in Model 2, an interaction term between age and linkage strength is added to the model. This interaction term is negative and significant (−0.005 for men and −0.007 for women). The main effect of linkage strength is highly positive and significant. For a 16-year-old male, an increase of linkage by one standard deviation leads to e0.221 = 1.247 times higher odds of being employed. For a female of the same age the odds are multiplied with e0.267 = 1.306. The coefficient for age remains more or less at the same size as in the model without the interaction. The negative interaction implies that with increasing age, the positive effect of linkage strength on employment probabilities decreases and reverses to a negative effect at one point of age. Pseudo R2 is reasonably high in the models but does not get enhanced much by adding the interaction effect. For men, the value rises from 0.175 to 0.176. For women, an increase from 0.163 to 0.164 is visible. This indicates that the interaction effect is not highly important for the fit of the model on the data although it is significant. Again, the KHB method is used to show the coefficients with a correction for re-scaling bias. The sizes of the coefficients hardly differ between the models with and without KHB. The results are again presented in Appendix D. In principle, the result is in line with hypothesis 2. Strongly linking educational programmes are beneficial early in the life-course but the benefits decrease over the lifecourse. However, looking at the large size of the positive main effect of linkage strength and 26 the relatively small effect size of the interaction effect, it is still not clear how substantive those later disadvantages are. To illustrate the main findings of the table and the influence of linkage strength over the life-course, two sets of graphs are presented. Figure 5 shows predicted probabilities of being employed over the life-course for three different levels of linkage strength: low linkage (10th percentile of the distribution), average linkage and high linkage (90th percentile). It can be seen that employment probabilities rise for all individuals up to the age of about 40 years for men and 35 years for women and then begin a decline. This curvilinear pattern of age with a peak in the mid thirties reflects the results of previous studies (e.g. Hanushek et al., 2011). Looking at the different levels of linkage strength, individuals with higher linkage start out at a higher level of predicted employment probabilities. At an age of 16, male graduates of highly linking programmes have a predicted probability of being employed of 63.8 percent, whereas the probability is only 50 percent for graduates from lowly linking programmes. For women, the respective predicted probabilities are 70.5 and 53.4 percent. This advantage for individuals from highly linking programmes remains substantive until about 30 years of age. It shows the strong benefit of vocationality in the transition from school to work. With increasing age, the benefit of linkage strength decreases. However, it can be seen that the predicted employment probabilities of individuals in highly linking programmes (90th percentile) stay higher than for other individuals up to shortly before 60 years of age. This is a much later point in time than predicted by Hanushek et al. (2011). After this time point, a higher linkage strength leads to lower predicted employment probabilities than a lower linkage if all other variables are kept at their mean. However, as predicted employment probabilities for all individuals steeply decrease at that age, the level of linkage strength does not make much difference for employment probabilities. Given the much stronger differences for different levels of linkage strength earlier in the career, one can interpret the life course pattern rather as a convergence than a real decline with disadvantages for graduates from highly linking educational programmes. The patterns of men and women are similar here, although employment probabilities for women are on average lower and start to decline much earlier in the life-course than those of men. 27 Figure 5: Predicted Probabilities of Being Employed for Different Levels of Linkage Strength over the Life-course (Other Variables at Mean) (a) Men (b) Women 28 Figure 6: Conditional Marginal Effects of Linkage Strength at Different Ages (a) Men (b) Women A graph of the conditional marginal effect of linkage strength shows the influence of vocationality more clearly (Figure 6). The effect of linkage strength is high and positive for young ages but declines and finally reaches zero at an age between 55 and 60. This point of reversion is very similar for men and women. However, it can be noted that for women the influence of linkage strength stays high for a longer period in the life-course. After the age of 60 the effect of linkage strength becomes slightly negative. For women this negative effect reaches significance at an age of 65 (p=0.001). Also for men, the effect borders significance (p=0.048). Although these effects are significant at the very last moments of the labour market career, the graphs show that while the advantages of vocationality disappear with increasing age, the effect does not become substantively negative. The largest part of their career, graduates from highly vocational programmes benefit from their training. Therefore, we cannot speak of a vocational decline in the sense that vocationality becomes a penalty if the whole life-course is considered. 6 Discussion We analysed school-to-work linkages in the Netherlands, resulting in two major findings. First, a measure for vocationality was introduced to the study of education and labour market outcomes that builds on the linkage between detailed educational programmes and labour market positions. With this measure it could be shown that the average occupational specificity of educational programmes which are labelled as vocational is not different from that in general educational programmes. Instead, differences within these categories are far bigger than differences between them. Especially on the tertiary level of education, general education programmes link almost as strongly to occupational positions as vocational programmes. Furthermore, this gradual measure of vocationality proved to be a stronger predictor of labour market outcomes than the traditional dichotomous mea- 29 sure of vocational education. With the new measure we better exploit the heterogeneity in vocationality and could show the labour market outcomes of different educational levelfields in greater detail. Second, the hypothesis about vocational life-course decline was re-assessed using detailed data from the EBB and the new linkage measure. Results show that graduates from educational programmes with a high occupational specificity, indeed, experience a decline of positive outcomes over their life-course compared to their peers with general education. However, while this decline leads to a convergence of outcomes, it does not result in disadvantages for individuals with highly linking education. Analyses with predicted probabilities of employment over the life-course could show that the decline is not strong enough to outweigh initial benefits of occupational specificity. Instead of a vocational penalty (Hanushek et al., 2011), we find a convergence of labour market outcomes. Vocational education does not become a burden in later life. These findings have several implications for the way scholars should look at vocational education. First, the clear individual level benefits of occupational specificity that are found for the school-to-work transition confirm earlier studies on the topic (Shavit and Müller, 1998; Breen, 2005; Scherer, 2005). In the Netherlands, occupational specificity is relevant for the labour market allocation of students and the effect cannot be reduced to mere differentiation in the educational system. If occupational specificity is mostly driven by skills, signalling, networks or closure is still an open question that can be addressed by further research. Second, the heterogeneities in the occupational specificity of educational level-fields show that the traditional operationalization of vocationality in a dichotomy of specific and general education is not suitable for measuring vocationality. These results also show that we should think about vocationality not in different school types but focus more on single educational level-fields with their own individual degree of occupational specificity. University degrees may be as specific as the programmes in secondary education which were classically defined as vocational programmes. Therefore, we strongly advise future research to account for this gradual nature of vocationality. In comparative research, the linkage measure has the potential to build a more consistent measure of vocationality across countries. It is based on the actual specificity of individual programmes and can easily be aggregated on the country level. Third, the convergence of life-course employment probabilities in the Netherlands does not confirm previous research that would have predicted a decline (Hanushek et al., 2011). There might be several reasons for this missing decline that should be investigated by further studies. On-the-job training might effectively prevent the decline of skills in the Netherlands. The Macro-level structure of the labour market in the Netherlands could be another factor that advantages vocational skills. If vocational advantage works through the signalling mechanism, it could also be the case that educational signals simply lose their influence the more experience an individual has gathered on the labour market. Then, the educational linkage strength does not predict outcomes anymore for older workers. Finally, also the way in which 30 licensure or other closure mechanisms work in the Netherlands might be responsible for the convergence. Again, the exact mechanisms are to be determined by further research. In all of these cases, the clear finding remains: vocational education is beneficial for the employment of graduates throughout the life-course in the Netherlands. The consequences of these findings are also relevant for policies surrounding vocational education. In the Netherlands, occupation specific training can be considered suitable for increasing employment especially among young people. By fostering a high vocationality in educational programmes, graduates benefit in the beginning of their career without facing substantive disadvantages later. This finding also shows that the vocational content of programmes within educational levels is important when looking for ways to optimize the employability of graduates. This advice should be especially considered in debates that seek to focus policy on increasing the educational level of all graduates instead of reforming the content of programmes within levels. As the heterogeneity of vocationality within programmes which are categorized as vocational or general is high, it will also be valuable to look beyond those broad categories when trying to improve occupational specificity of education. Not the expansion of a single school type like MBO will improve labour market prospects of youth but the focus on vocationality within single educational programmes. Of course, this employability might stand in a trade-off to other functions of education like the enhancement of equality of opportunity or civic participation which we have not considered in this paper. However, if labour market allocation is in focus, vocationality seems to have considerable benefits for students. These findings and their consequences are substantive but the study also has some limitations that should be addressed by further research. First, the most obvious limitation is that the study only covers one country case. Linkage strength might work differently in other national contexts which makes it important to extend the findings and re-evaluate the influence of linkage strength in other countries. Determining the linkage strength for a number of countries will also enable comparative work with this measurement. Nevertheless, the case of the Netherlands is a typical context for a country with a highly vocational educational system. Therefore, the results are also indicative for other countries which have a similar structure of training and labour market systems. Second, the effects we found are embedded in the context of other individual characteristics and lifecourse events that should be considered in more extensive research. For example, in our research we cannot consider individual skill levels and socio-demographic background of respondents, two factors that might determine both, the selection into a specific form of education and the labour market outcomes of respondents. Also, linkage strength might differ between the sexes and between different ethnic groups in society. Another aspect are other life-course events during the labour market career. Employment probabilities are most likely not only determined by education and age but other events that occur during the time between school graduation and retirement. These factors are hard to 31 capture with our cross-sectional data. Using panel data and applying selection models in future research could refine our results in this respect. Third, the linkage measure itself needs further development. It is a powerful measure that can show vocationality in great detail. However, there are still some reliability issues that need to be resolved. One problem is the minimum cell size for the educational categories that was already discussed earlier. Another issue with reliability that is already pointed out by DiPrete et al. (2015) is the fact that linkage strength depends to a great extent on the level of aggregation of educational and occupational categories. If instead of four-digit SOI and three-digit ISCO codes, a higher or lower detail-level is used, the grouping of individuals in educations and occupations might differ and thereby affect linkage strength. These problems should be addressed in further research. Finally, future research could extend the application of the new linkage measure to the study of other labour market outcomes like occupational status and earnings which we did not yet consider in this paper. This study changes the way we look at vocational education over the life-course: in the Netherlands, vocationality does not become a penality for graduates and can be evaluated positively throughout the career. We hope that these results for the Netherlands lead to further research on the life-course consequences of vocational education in a comparative perspective. Thereby, the gradual way of measuring vocationality of individual programmes which we applied in this study is a fruitful approach for such an endeavour. 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At an age of four years they enter primary school (basisschool ) of which the first two grades are still considered as preprimary education on SOI-level 10. The remaining six years of basisschool are subsumed under level 20 (primary education). From an age of twelve, the Dutch educational systems is differentiated in different tracks. In the first three to four years of the tracked system, VWO, HAVO and the theoretical track of VMBO are considered as lower secondary education, high level (33). The more basic VMBO tracks are considered as lower secondary intermediate (32) in the SOI classification. Vocational courses which are termed Praktijkonderwijs are considered as low level lower secondary education (31). In upper secondary education, the last three years of VWO as well as MBO level 4 programmes (middle-management training) are considered as high level (43), the two final years of HAVO and MBO level 3 programmes (professional training) are categorized as intermediate (42), and MBO level 2 programmes (basic vocational training) are seen as low level (41). While VWO and HAVO are considered as general education, the different MBO programmes are classified as vocational in the dichotomous measure of vocationality. Figure A1: Educational System of the Netherlands 0 1 2 3 4 Kindercentra, Peuterspeelzalen (10) 5 6 Basissch. (10) 7 8 9 Age 10 11 Basisschool (20) 12 13 14 15 16 VWO (33) HAVO (33) 17 18 19 VWO (43) HAVO (42) 20 1 2 years of education 6 -- 10 3 4 5 WO bachelor (53) WO master (60) WO (70) HBO bachelor (52) Short HBO (51) VMBO theoretical (33) VMBO basic (32) MBO-4 (43) MBO-3 (42) MBO-2 (41) Praktijkonderwijs (31) Note: The numbers in parentheses are the level as used in SOI and in the level-field code in this paper. 36 Table A1: School Types in the Dutch Educational System Abbreviation Full name Translation VMBO Voorbereidend middelbaar beroepsonderwijs Preparatory intermediate vocational education HAVO Hoger algemeen voortgezet onderwijs Higher general continued education VWO Voorbereidend wetenschappelijk onderwijs Preparatory academic education MBO Middelbaar beroepsonderwijs Intermediate vocational education HBO Hoger beroepsonderwijs Higher vocational education WO Wetenschappelijk onderwijs Academic Education, University In higher education it is distinguished between scientific WO bachelor programmes (53) and professional HBO programmes (51 and 52). The master (60) and doctorate levels (70) are not differentiated in different sub-levels. B Analysis of Sparse-cell Bias When obtaining the local segregation of categories, the number of observations in a certain level and field of education plays a critical role. If sizes of level-field cells are very low, the local segregation is likely to be overestimated. Single cases are much more influential in those small cells. If, for example, in a cell with only 10 observations, two by coincidence have the same occupation, this already constitutes 20 percent clustering in one occupation. This leads to a high fluctuation of the linkage strength measure due to randomness and overall likelihood to observe stronger linkages for the cell. This, of course, is a problem for the reliability of the local segregation measure. To gain insight in the nature of this problem and when it affects the outcome of the local segregation measure, an analysis is done on the question what minimum cell size is required to obtain a reliable measure of local segregation. For this purpose, the local segregation is simulated for different cell sizes. From the original level-fields, random samples of different sizes are drawn and used as a sort of forced cell size. Starting with a forced cell size of 500, samples are drawn in steps of 20 and going down to a forced cell size of 20. For each of these forced cell sizes a sample is drawn 10 times. For all these artificially lowered cell sizes, local segregation is calculated. As in each of the 10 repetitions, the sample should be different, this analysis results in 10 different local segregation measures for each forced cell size from 20 to 500 and for each of the 351 level-fields.12 This analysis results in a data set with 250 local segregation values for each level-field (25 sample sizes x 10 repetitions). This data is used to determine the minimum cell size acceptable for the segregation analysis. 12 For cells which were already smaller than 500 in the beginning, the 10 repetitions do not lead to 10 different values as long as the forced cell size exceeds the actual full cell size. 37 To determine at what cell size the local segregation measure starts to get inflated, the mean of the 10 repetitions in each forced cell size is compared to the mean at cell size 500, a cell size at which inflation should not be a big problem anymore. A further question is, when a local segregation value should be considered as inflated or unreliable. Reliability is defined as a maximum of deviation from the mean local segregation for sample size 500. A lower ratio, thereby, means a stricter criterion for reliability. For example, if the ratio is 1.1., each exceeding of this ratio is considered an unreliable local segregation measure. Different ratios of deviation from the mean at cell size 500 are displayed to evaluate this question with different levels of strictness. The results are shown in Figure B1. Figure B1: First Exceeding of Ratios (from 500 downwards) (a) All cells (b) All cells larger than 500 The figure shows the cumulative percentage of level-fields of which local segregation exceeds a certain ratio (1.1, 1.2, 1.5, 2.0) at a certain cell size compared to the local 38 segregation of the same level-field at cell size 500. Sub-figure (a) shows this percentage for all 351 level-fields in the data set, Sub-figure (b) is restricted to those 90 level-fields which are larger than 500 observations in the original data. In Sub-figure (a), it can be seen that if a ratio of 2.0 or 1.5 is chosen, the measure only becomes unreliable if the cell size is lower than 100. However, if 1.2 is chosen as a ratio, only cell sizes larger than 200 can be considered as reliable. For a ratio of 1.1, even a cell size of about 360 or higher would be necessary if no deviations were to be tolerated. In Sub-figure (b), the 1.5 ratio starts to get exceeded more often if cells are smaller than 120. For ratio 1.2, again almost 300 cases per cell would be necessary. And a ratio of 1.1 is only accomplished with 400 cases or more. This result stands in an obvious trade-off with the amount of data per cell that is available. To obtain a reliable measure and to be able to evaluate a high number of educational and occupational categories, a minimum cell size of 120 is chosen for this paper - thereby, the local segregation measure remains at least largely within the deviation ratio of 1.5. 39 C Segregation Analysis: List of Educational and Occupational Categories Table C1: Educational Categories, Linkage Strength and Frequency Level Field SOI Freq. Pre-primary education Primary education Lower secondary education, low level Lower secondary education, low level Lower secondary education, low level Lower secondary education, intermediate Lower secondary education, intermediate Lower secondary education, intermediate Lower secondary education, intermediate General education General education General education Languages Other Administration, secretarial Engineering Construction Metal processing, vehicle and tool manufacturing Care, community services Other General education Humanities, social sciences, communication and arts with differentiation Commercial Administration, secretarial Engineering general Electrical engineering Construction Metal processing, vehicle and tool manufacturing Process technology Textile and leather processing, other Agriculture Care, community services Hotels, gastronomy, tourism and leisure Transport and logistics Hotels, gastronomy, tourism, leisure, transport and logistics with differentiation Other Teachers general education Teachers technical subjects and transport Teachers (health) care, sports and other Commercial Management Administration, secretarial Public order, security Mathematics, natural sciences Computer science Electrical engineering Construction Metal processing, vehicle and tool manufacturing Process technology Agriculture 1001 2001 3101 3121 3198 3235 3260 3263 3264 1,263 7,862 670 682 240 141 130 127 160 0.902 0.561 0.635 0.965 0.783 0.838 1.148 1.750 1.619 3282 3298 3301 3327 393 363 12,131 157 1.085 0.829 0.281 1.263 3332 3335 3361 3362 3363 3364 1,339 1,276 755 1,157 3,294 3,557 0.576 0.525 0.791 0.883 1.213 0.983 3365 3366 3371 3382 3391 3392 3397 483 259 1,257 5,034 370 535 150 0.844 0.974 1.210 0.833 0.889 1.785 1.051 3398 4111 4114 4116 4132 4133 4135 4142 4151 4152 4162 4163 4164 275 155 138 205 710 174 791 382 215 198 362 1,099 1,039 0.807 2.074 3.141 1.890 0.822 0.706 0.656 2.096 1.325 1.479 1.874 1.660 1.315 4165 4171 459 266 1.342 1.494 level level level level Lower Lower Lower Lower secondary education, intermediate level secondary education, intermediate level secondary education, high level secondary education, high level Lower Lower Lower Lower Lower Lower secondary secondary secondary secondary secondary secondary education, education, education, education, education, education, high high high high high high level level level level level level Lower Lower Lower Lower Lower Lower Lower secondary secondary secondary secondary secondary secondary secondary education, education, education, education, education, education, education, high high high high high high high level level level level level level level Lower secondary education, high level Upper secondary education, low level Upper secondary education, low level Upper secondary education, low level Upper secondary education, low level Upper secondary education, low level Upper secondary education, low level Upper secondary education, low level Upper secondary education, low level Upper secondary education, low level Upper secondary education, low level Upper secondary education, low level Upper secondary education, low level Upper secondary education, low level Upper secondary education, low level 40 Linkage Level Upper Upper Upper Upper Upper secondary secondary secondary secondary secondary education, education, education, education, education, low low low low low level level level level level Upper secondary education, low level Upper secondary education, intermediate level Upper secondary education, intermediate level Upper secondary education, intermediate level Upper secondary education, intermediate level Upper secondary education, Upper secondary education, Upper secondary education, Upper secondary education, Upper secondary education, Upper secondary education, intermediate level intermediate level intermediate level intermediate level intermediate level intermediate level Upper secondary education, Upper secondary education, Upper secondary education, Upper secondary education, Upper secondary education, intermediate level intermediate level intermediate level intermediate level intermediate level Upper secondary education, Upper secondary education, Upper secondary education, Upper secondary education, intermediate level intermediate level intermediate level intermediate level Upper secondary education, Upper secondary education, Upper secondary education, Upper secondary education, Upper secondary education, intermediate level intermediate level intermediate level intermediate level intermediate level Upper secondary education, intermediate level Upper secondary education, high level Upper secondary education, high level Upper secondary education, high level Upper secondary education, high level Upper secondary education, high level Upper secondary education, high level Upper Upper Upper Upper Upper Upper secondary secondary secondary secondary secondary secondary education, education, education, education, education, education, high high high high high high level level level level level level Upper secondary education, high level Upper secondary education, high level Field SOI Freq. Health care and community services Care, community services Hotels, gastronomy, tourism and leisure Transport and logistics Hotels, gastronomy, tourism, leisure, transport and logistics with differentiation Other General education Teachers Humanities, social sciences, communication and arts Humanities, social sciences, communication and arts with differentiation Commercial Management Administration, secretarial Law, public administration Public order, security Law, public administration, public order and security Computer science Engineering general Electrical engineering Construction Metal processing, vehicle and tool manufacturing Process technology Engineering with differentiation Agriculture Agriculture and environment with differentiation Health care Care, community services Hotels, gastronomy, tourism and leisure Transport and logistics Hotels, gastronomy, tourism, leisure, transport and logistics with differentiation Other General education Teachers general education Teachers (health) care, sports and other Humanities, social sciences, communication and arts Arts, expression Humanities, social sciences, communication and arts with differentiation Commercial Management Human resource management, personnel Administration, secretarial Law, public administration Law, public administration, public order and security Mathematics, natural sciences Computer science 4180 4182 4191 4192 4197 163 1,483 654 280 138 1.239 1.180 1.298 2.226 1.197 4198 4201 4210 4220 266 9,941 121 195 0.679 0.198 1.246 0.710 4227 227 1.776 4232 4233 4235 4241 4242 4247 1,305 239 2,077 146 725 316 0.561 0.564 0.633 1.360 1.788 1.096 4252 4261 4262 4263 4264 136 406 437 1,503 1,550 1.575 0.791 1.551 1.471 1.236 4265 4267 4271 4277 226 121 739 132 1.976 1.448 1.446 1.560 4281 4282 4291 4292 4297 1,664 5,592 587 322 193 1.539 1.145 1.542 1.397 1.657 4298 4301 4311 4316 4320 385 4,771 431 454 132 0.842 0.254 1.167 1.224 1.019 4325 4327 598 414 1.141 1.181 4332 4333 4334 4335 4341 4347 5,345 506 215 4,932 474 185 0.501 0.485 0.992 0.812 0.872 0.808 4351 4352 342 684 1.301 1.360 41 Linkage Level Upper Upper Upper Upper secondary secondary secondary secondary education, education, education, education, high high high high level level level level Upper Upper Upper Upper Upper Upper Upper Upper secondary secondary secondary secondary secondary secondary secondary secondary education, education, education, education, education, education, education, education, high high high high high high high high level level level level level level level level Upper secondary education, high level Upper secondary education, high level Upper secondary education, high level Upper secondary education, high level Higher education, first phase, low level Higher education, first phase, low level Higher education, first phase, low level Higher education, first phase, low level Higher education, first phase, low level Higher education, first phase, low level Higher education, first phase, low level Higher education, first phase, low level Higher Higher Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level education, first phase, low level education, first phase, low level education, first phase, intermediate education, first phase, intermediate education, first phase, intermediate education, first phase, intermediate education, first phase, intermediate Field SOI Freq. Linkage Engineering general Electrical engineering Construction Metal processing, vehicle and tool manufacturing Process technology Textile and leather processing, other Engineering with differentiation Agriculture and environment Agriculture Health care Care, community services Health care and community services with differentiation Hotels, gastronomy, tourism and leisure Transport and logistics Hotels, gastronomy, tourism, leisure, transport and logistics with differentiation Other Commercial Management Human resource management, personnel Administration, secretarial Engineering (Health) care and community services Health care Hotels, gastronomy, tourism, leisure, transport and logistics Transport and logistics Other Teachers general education 4361 4362 4363 4364 2,199 1,134 2,915 3,296 1.052 1.190 1.085 0.852 4365 4366 4367 4370 4371 4381 4382 4387 507 675 196 134 2,160 4,255 4,862 1,003 1.363 0.731 1.111 1.324 1.454 1.587 0.972 2.197 4391 4392 4397 1,904 501 254 0.736 1.243 1.505 4398 5132 5133 5134 5135 5160 5180 5181 5190 224 532 239 137 212 161 122 208 137 0.897 0.945 0.668 1.524 1.147 1.571 1.182 2.171 0.895 5192 5198 5211 161 300 4,701 3.230 0.933 2.085 5212 1,587 1.277 5213 420 1.571 5214 520 0.948 Teachers humanities, social sciences, communication and arts Teachers mathematics, natural sciences, agriculture Teachers technical subjects and transport 5215 201 1.326 education, first phase, intermediate Teachers economics, commercial, management and administration Teachers (health) care, sports and other 5216 1,147 1.021 education, first phase, intermediate Education with differentiation 5217 236 2.334 education, first phase, intermediate Languages 5221 179 1.054 education, first phase, intermediate Social sciences 5223 758 0.838 education, first phase, intermediate Communication, media, information 5224 1,072 1.337 education, first phase, intermediate Arts, expression 5225 1,133 1.346 education, first phase, intermediate Humanities, social sciences, communication and arts with differentiation Economics 5227 188 1.501 5231 1,122 1.128 education, first phase, intermediate 42 Level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher level Higher Field SOI Freq. education, first phase, intermediate Commercial 5232 2,342 0.740 education, first phase, intermediate Management 5233 1,682 0.641 education, first phase, intermediate Human resource management, personnel 5234 1,092 1.304 education, first phase, intermediate Administration, secretarial 5235 1,205 1.623 education, first phase, intermediate 5237 925 0.908 education, first phase, intermediate Economics, commercial, management and administration with differentiation Law, public administration 5241 571 1.072 education, first phase, intermediate Public order, security 5242 210 2.290 education, first phase, intermediate 5247 239 0.857 education, first phase, intermediate Law, public administration, public order and security Mathematics, natural sciences 5251 924 1.293 education, first phase, intermediate Computer science 5252 807 2.140 education, first phase, intermediate Engineering general 5261 358 1.115 education, first phase, intermediate Electrical engineering 5262 1,142 1.436 education, first phase, intermediate Construction 5263 1,254 1.390 education, first phase, intermediate 5264 1,173 1.164 education, first phase, intermediate Metal processing, vehicle and tool manufacturing Process technology 5265 460 1.028 education, first phase, intermediate Textile and leather processing, other 5266 160 1.198 education, first phase, intermediate Engineering with differentiation 5267 318 0.993 education, first phase, intermediate Agriculture 5271 562 0.915 education, first phase, intermediate Environment 5272 140 1.662 education, first phase, intermediate 5277 202 1.002 education, first phase, intermediate Agriculture and environment with differentiation Health care 5281 4,101 1.909 education, first phase, intermediate Care, community services 5282 3,477 0.903 education, first phase, intermediate 5287 951 1.729 education, first phase, intermediate Health care and community services with differentiation Hotels, gastronomy, tourism and leisure 5291 702 0.820 education, first phase, intermediate Transport and logistics 5292 751 0.908 education, first phase, intermediate Hotels, gastronomy, tourism, leisure, transport and logistics with differentiation Other 5297 615 0.700 5298 129 1.238 5320 136 0.939 education, first phase, intermediate education, first phase, high level Humanities, social sciences, communication and arts 43 Linkage Level Field SOI Freq. Higher education, first phase, high level Higher education, first phase, high level Higher education, first phase, high level Languages Social sciences Economics, commercial, management and administration Law, public order Other Teachers humanities, social sciences, communication and arts Teachers mathematics, natural sciences, agriculture Languages Humanities other Social sciences Communication, media, information Arts, expression Economics Commercial Management Human resource management, personnel Administration, secretarial Economics, commercial, management and administration with differentiation Law, public administration Public order, security Mathematics, natural sciences Computer science Engineering general Electrical engineering Construction Metal processing, vehicle and tool manufacturing Process technology Textile and leather processing, other Agriculture and environment Agriculture Health care Care, community services Health care and community services with differentiation Hotels, gastronomy, tourism, leisure, transport and logistics Other Management Administration, secretarial Law, public administration Mathematics, natural sciences Health care Other 5321 5323 5330 153 277 298 1.039 0.669 1.012 5341 5398 6012 182 347 473 0.953 0.785 1.995 6013 142 2.415 6021 6022 6023 6024 6025 6031 6032 6033 6034 6035 6037 1,146 624 2,723 357 931 1,040 629 795 175 217 551 1.140 1.442 1.157 1.516 1.409 1.229 0.605 1.000 1.543 2.250 1.241 6041 6042 6051 6052 6061 6062 6063 6064 2,267 214 935 257 509 244 790 324 1.824 2.342 1.272 2.024 1.172 2.077 1.670 1.501 6065 6066 6070 6071 6081 6082 6087 260 205 222 220 933 938 263 1.341 1.417 1.461 1.045 2.032 1.097 1.531 6090 134 1.302 6098 7033 7035 7041 7051 7081 7098 272 312 405 291 355 1,249 461 1.364 1.247 2.352 3.172 1.729 3.494 1.311 Higher education, first phase, high level Higher education, first phase, high level Higher education, second phase Higher education, second phase Higher Higher Higher Higher Higher Higher Higher Higher Higher Higher Higher education, education, education, education, education, education, education, education, education, education, education, second second second second second second second second second second second phase phase phase phase phase phase phase phase phase phase phase Higher Higher Higher Higher Higher Higher Higher Higher education, education, education, education, education, education, education, education, second second second second second second second second phase phase phase phase phase phase phase phase Higher Higher Higher Higher Higher Higher Higher education, education, education, education, education, education, education, second second second second second second second phase phase phase phase phase phase phase Higher education, second phase Higher Higher Higher Higher Higher Higher Higher education, education, education, education, education, education, education, second phase third phase third phase third phase third phase third phase third phase Source: EBB 2010–2012, own calculations 44 Linkage Table C2: Occupational Categories - ISCO 3-digit Codes ISCO Title 110 Chief executives, senior officials and legislators Legislators and senior officials Managing directors and chief executives Business services and administration managers Sales, marketing and development managers Production managers in agriculture, forestry and fisheries Manufacturing, mining, construction, and distribution managers Information and communications technology service managers Professional services managers Hotel and restaurant managers Retail and wholesale trade managers Other services managers Science and engineering professionals Physical and earth science professionals Mathematicians, actuaries and statisticians Life science professionals Engineering professionals (excluding electrotechnology) Electrotechnology engineers Architects, planners, surveyors and designers Medical doctors Nursing and midwifery professionals Traditional and complementary medicine professionals Veterinarians Other health professionals Teaching professionals University and higher education teachers Vocational education teachers Secondary education teachers Primary school and early childhood teachers Other teaching professionals Finance professionals Administration professionals Sales, marketing and public relations professionals Information and communications technology professionals Software and applications developers and analysts Database and network professionals Legal professionals 111 112 121 122 131 132 133 134 141 142 143 210 211 212 213 214 215 216 221 222 223 225 226 230 231 232 233 234 235 241 242 243 250 251 252 261 Freq. 123 1,313 1287 ISCO Title 262 263 264 265 310 Librarians, archivists and curators Social and religious professionals Authors, journalists and linguists Creative and performing artists Science and engineering associate professionals Physical and engineering science technicians Mining, manufacturing and construction supervisors Process control technicians Life science technicians and related associate professionals Ship and aircraft controllers and technicians Health associate professionals Medical and pharmaceutical technicians Nursing and midwifery associate professionals Veterinary technicians and assistants Other health associate professionals Financial and mathematical associate professionals Sales and purchasing agents and brokers Business services agents Administrative and specialised secretaries Regulatory government associate professionals Legal, social and religious associate professionals Sports and fitness workers Artistic, cultural and culinary associate professionals Information and communications technicians Information and communications technology operations and user support technicians Telecommunications and broadcasting technicians General office clerks Secretaries (general) Keyboard operators Tellers, money collectors and related clerks Client information workers Numerical clerks Material-recording and transport clerks Other clerical support workers Travel attendants, conductors and guides 2057 311 1437 312 16 2547 313 314 456 315 2968 999 2568 301 274 250 320 321 322 324 325 331 57 461 2108 332 333 334 354 1482 335 1313 2182 173 341 342 343 118 1744 4684 774 350 351 2121 1863 14 352 1043 2168 5792 2919 411 412 413 421 1462 2125 422 431 432 2239 1593 441 511 45 Freq. 228 3191 1024 893 355 3145 2064 1098 200 516 57 1528 2692 19 1950 3661 1869 3509 2214 2093 3751 599 768 115 264 206 6525 1847 68 166 3039 1692 3690 3716 421 ISCO Title 512 513 514 Cooks Waiters and bartenders Hairdressers, beauticians and related workers Building and housekeeping supervisors Other personal services workers Sales workers Street and market salespersons Shop salespersons Cashiers and ticket clerks Other sales workers Child care workers and teachers’ aides Personal care workers in health services Protective services workers Market gardeners and crop growers Animal producers Mixed crop and animal producers Forestry and related workers Fishery workers, hunters and trappers Building frame and related trades workers Building finishers and related trades workers Painters, building structure cleaners and related trades workers Sheet and structural metal workers, moulders and welders, and related workers Blacksmiths, toolmakers and related trades workers Machinery mechanics and repairers Handicraft workers Printing trades workers Electrical equipment installers and repairers Electronics and telecommunications installers and repairers Food processing, wood working, garment and other craft and related trades workers Food processing and related trades workers Wood treaters, cabinet-makers and related trades workers Garment and related trades workers Other craft and related workers Mining and mineral processing plant operators Metal processing and finishing plant operators Chemical and photographic products plant and machine operators 515 516 520 521 522 523 524 531 532 541 611 612 613 621 622 711 712 713 721 722 723 731 732 741 742 750 751 752 753 754 811 812 813 Freq. ISCO Title 938 3491 1739 814 874 816 734 1 337 10421 1502 620 3321 7314 817 Rubber, plastic and paper products machine operators Textile, fur and leather products machine operators Food and related products machine operators Wood processing and papermaking plant operators Other stationary plant and machine operators Assemblers Locomotive engine drivers and related workers Car, van and motorcycle drivers Heavy truck and bus drivers Mobile plant operators Ships’ deck crews and related workers Domestic, hotel and office cleaners and helpers Vehicle, window, laundry and other hand cleaning workers Agricultural, forestry and fishery labourers Mining and construction labourers Manufacturing labourers Transport and storage labourers Food preparation assistants Refuse workers Other elementary workers 815 818 821 831 832 833 834 835 911 2042 2910 1585 323 14 88 4397 912 921 2038 931 932 933 941 961 962 1113 1318 Source: EBB 2010–2012, own calculations 967 3528 179 526 1587 397 236 736 756 501 243 120 78 78 46 Freq. 266 295 421 57 359 411 166 1079 3873 1579 70 5401 327 174 286 1230 3818 812 266 945 D KHB Models Tables D1 and D2 present the logistic regressions with KHB technique for both sets of analyses – school-to-work and life-course. If a control variable is added in linear regression, the total effect of X on an outcome Y is composed of the sum of the direct effect of X symbolized by the coefficient of X and the indirect effect of X via a mediator Z, displayed in the coefficient of Z. This decomposition of the total effect in direct and indirect effect is not possible in logistic regression models in which the coefficients depend on the error variance and this error variance differs between nested models. This varying error variance can be referred to as rescaling. The KHB technique calculates unbiased comparisons of logit coefficients of the same variable across Table D1: KHB - School-to-work Transition (DV: Employment Probabilities) Men Model 1 Linkage Strength (standardized) Model 2 0.150*** (0.025) Vocational (ref=general) Women Model 3 Model 1 0.138*** 0.164*** (0.033) (0.025) Model 2 Model 3 0.152*** (0.029) 0.236*** 0.051 0.213*** 0.070 (0.050) (0.069) (0.047) (0.057) 0.521*** 0.613*** (0.157) Educational level (ref=pre-primary) Primary 0.557*** 0.463*** 0.549*** 0.621*** (0.159) (0.159) (0.160) (0.157) (0.156) Lower Secondary 1.235*** 1.054*** 1.202*** 1.345*** 1.152*** 1.302*** (0.145) (0.148) (0.153) (0.143) (0.145) (0.148) 1.768*** 1.597*** 1.729*** 2.377*** 2.201*** 2.322*** (0.144) (0.148) (0.152) (0.141) (0.145) (0.148) 2.024*** 1.823*** 1.977*** 2.656*** 2.483*** 2.591*** (0.233) (0.238) (0.240) (0.202) (0.206) (0.208) 2.106*** 2.201*** 2.113 2.972*** 3.096*** 2.980*** (0.149) (0.148) (0.150) (0.145) (0.144) (0.145) 1.611*** 1.901** 1.635*** 2.301*** 2.721*** 2.333*** (0.394) (0.395) (0.395) (0.349) (0.353) (0.349) 0.205*** 0.206*** 0.203*** 0.069*** 0.070*** 0.066*** (0.014) (0.014) (0.014) (0.013) (0.013) (0.013) -0.005*** -0.005*** -0.005*** -0.003*** -0.003*** -0.003*** (0.001) (0.001) (0.001) (0.001) (0.001) (0.001) -1.575*** -1.601*** -1.568*** -1.455*** -1.489*** -1.441*** (0.176) (0.176) (0.176) (0.171) (0.171) (0.172) Upper Secondary Post Secondary Tertiary Doctorate Age (centred at 16) Age squared (centred at 16) Constant Region fixed effects yes yes yes yes yes yes Year fixed effects yes yes yes yes yes yes N 29,982 29,982 29,982 30,070 30,070 30,070 Pseudo2 0.114 0.114 0.114 0.110 0.110 0.110 BIC 991,668 991,668 991,668 1,214,809 1,214,809 1,214,809 Source: EBB 2010–2012, own calculations Note: Logged odds, standard errors in parentheses. Sampling weights are applied. Significance levels: * p < 0.05, ** p < 0.01, *** p < 0.001 47 nested models, one with and one without a control variable (Karlson et al., 2012). It de-composites the total effect of a variable into the direct effect due to confounding and an indirect effect due to re-scaling. It does this by rescaling the coefficients in models with less predictors by including residuals of the predictors which are missing in the model. This enhances the comparability of the effect sizes of predictors across nested models. The coefficients in these KHB models can be compared to the regular logistic regression tables in the main text. No major differences are found in the size of the coefficients. Table D2: KHB - Life-course (DV: Employment Probability) Men Model 1 Women Model 2 Model 1 0.079*** 0.221*** 0.090*** 0.267*** (0.013) (0.026) (0.011) (0.024) Age (centred at 16) 0.212*** 0.208*** 0.115*** 0.113*** (0.003) (0.003) (0.003) (0.003) Age squared (centered at 16) -0.005*** -0.005*** -0.003*** -0.003*** (0.000) (0.000) (0.000) (0.000) Linkage Strength (standardized) Linkage Strength × Age Model 2 -0.005*** -0.007*** (0.001) (0.001) Educational level (ref=pre-primary) Primary Lower Secondary Upper Secondary Post Secondary Tertiary Doctorate Constant 0.635*** 0.620*** 0.900*** 0.865*** (0.081) (0.081) (0.076) (0.076) 1.173*** 1.183*** 1.414*** 1.400*** (0.075) (0.075) (0.071) (0.071) 1.577*** 1.584*** 2.092*** 2.099*** (0.074) (0.074) (0.071) (0.071) 1.643*** 1.643*** 2.299*** 2.314*** (0.089) (0.089) (0.083) (0.083) 1.983*** 1.996*** 2.595*** 2.596*** (0.076) (0.076) (0.072) (0.072) 2.478*** 2.527*** 2.690*** 2.661*** (0.181) (0.182) (0.212) (0.211) -1.560*** -1.513*** -1.675*** -1.644*** (0.088) (0.097) (0.097) (0.088) Region fixed effects yes yes yes yes Year fixed effects yes yes yes yes N 107,047 107,047 108,957 108,957 Pseudo R2 0.176 0.176 0.164 0.164 BIC 3,700,321 3,700,321 4,754,605 4,754,605 Source: EBB 2010–2012, own calculations Note: Logged odds, standard errors in parentheses. Sampling weights are applied. Significance levels: * p < 0.05, ** p < 0.01, *** p < 0.001 48
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