Vocational education (VE) in Israel has led to successful labour market outcomes, in terms of higher wages for male VE graduates who work in course-related jobs. In common with findings for other countries, however, this outcome relates to VE graduates in general only. But how successful is VE in raising the wages of the minorities and disadvantaged? And does its impact differ across sub-sections of the labour force?

Plenty of studies have compared wage levels of workers who have studied at secondary vocational schools with wages of workers who took academic schooling. They find that, in general, VE does not lead to higher wages. In some countries, like Israel, where labour markets are characterised by employment growth, skill shortages and a good match between vocational skills and available jobs, however, VE has led to higher wages for male VE graduates who work in course-related jobs. But how successful is VE in raising the wages of minorities and disadvantaged groups in the labour force? And what are the policy implications for decision-makers aiming to improve the economic well-being of particular groups?

A study by researchers at Bar Ilan University in Israel examines the effectiveness of VE in raising the wage levels of four disadvantaged sub-sections of the Israeli labour market: recent immigrants, Jews of Eastern origin, Israeli Arabs and women. Although based on 1983 census data, the findings are relevant to Israel's ongoing VE reform programme. The results are mixed, differing from group to group, thus justifying the approach of examining the impact of VE on different sub-sections of secondary school completers.

New immigrants with VE qualifications received no labour market wage advantage compared with their peers who had studied at general secondary schools. Other key findings include:

• Jews of Eastern origin (Sephardie) who had completed VE training, received a wage advantage of over 10% if employed in matched occupations, compared with a wage premium of 8.1% for Western Jews.
• Few Israeli Arabs have been able to benefit from VE's potential benefits because of the small size of the network of Arab vocational secondary schools (about half that of the Jewish sector). Moreover, student performance in Arab secondary schools is not high.
• Women are under-represented in courses leading to the high-paying blue collar (manual labour) occupations typically held by men, while being over-represented in so-called 'female' VE courses which do not enhance earnings.

VE success must be examined at the level of sub-groups in the labour market. Other policy recommendations include:

• New immigrants would benefit from the provision of special training programmes aimed at updating skills and bringing them into closer conformity with local labour market needs.
• VE for Israeli Arabs should be extended, in parallel with better resourcing for Arab academic secondary schools.
• Women need better VE career guidance which encourages them to consider enrolling in technical courses of study.
• Measures aimed at women are likely to be effective only if introduced in parallel with other steps which, over the longer term, would lead to changes in social norms concerning appropriate subjects of study and occupations.

Source(s):
'Can vocational education improve the wages of minorities and disadvantaged groups? The case of Israel', Economics of Education Review, Vol. 22, pp. 421-342, by Shoshana Neuman and Adrian Ziderman 2003

Funded by: The Commission of the European Communities (Targeted Socio-Economic Research Programme)

id21 Research Highlight: 15 June 2004

Further Information:
Adrian Ziderman
Department of Economics
Bar-Ilan University
Ramat Gan 52900
Israel

Tel: +972 3 531 8394
Fax: +972 3 535 3180
Contact the contributor: zidera@mail.biu.ac.il

Bar-Ilan University, Israel

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