Article 2021

Urban/rural disparities in the wage effect of additional vocational education after formal education: the case of the Philippines

International Journal of Training Research
Journal · Vol. 19 · Issue 3 · pp. 229-241
Abstract

The aim of this study is to investigate and compare rural and urban returns to additional vocational education after completing formal education in the Philippines. We estimate the returns to additional vocational education after formal education in formal employment and also rural/urban disparities for each industry sector. The investigation of the wage effect is based on the Mincerian Earnings Function, initially using OLS estimations and then correcting for sample selection bias using the Heckman method. Preliminary findings confirm that the wage effect is associated with additional vocational education for those completing secondary education, and the effect is more pronounced in rural than in urban areas. Thus, our principal finding is that vocational education is potentially more useful in rural areas, especially for those completing secondary education in the Philippines and especially considering that only about 6% of the workforce has completed any vocational education. © 2021 Informa UK Limited, trading as Taylor & Francis Group.

Keywords

Author Keywords

Wage effects Technical and Vocational Education and Training (TVET) Philippines rate of return to education (ROR)

Index Keywords

Author Affiliations
Center for the Study of International Cooperation in Education, Hiroshima University, Higashihiroshima, Hiroshima, Japan
Funding & Acknowledgements
Japan Society for the Promotion of Science, JSPS
Grant: 19K23289
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