This chapter examines post-compulsory education choices and their long-term economic implications. It explores the factors influencing students’ decisions between vocational training and academic education, highlighting the role of labor market conditions, individual preferences, and expected returns on education. Empirical evidence shows that economic booms can reduce education continuation rates by increasing job opportunities for low-skilled workers. The analysis shows that vocational education provides a smoother school-to-work transition, particularly in countries with strong apprenticeship systems. However, academic education might yield higher lifetime earnings. The chapter emphasizes the importance of aligning education policies with labor market demands to enhance educational and employment outcomes. © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2025.
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