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25. Are young IVET graduates more likely to be in employment than those with lower level qualifications?

Indicator 2100: employment premium for IVET graduates (over low-educated)
Figure 25 Employment premium for IVET graduates (over low-educated)

To consider the benefit of IVET further, the indicator here compares the employment rates of VET graduates (20-34 year-olds with a vocational qualification at ISCED 3-4 as their highest level of education attainment) with the employment rate of those with a lower level of education; that is, those with at most lower secondary qualifications (ISCED 0-2).

Both employment rates exclude individuals in further formal or non-formal education and training and refer to 20-34 year-olds.

The comparison is undertaken by calculating the difference in percentage points between the two employment rates.

Figure 25: Employment premium for IVET graduates (over low-educated)

Source: Cedefop calculations based on Eurostat, EU labour force survey.

Key points

In 2016, those aged 20-34 years in the EU holding a medium level VET qualification had an employment rate 23.4 percentage points higher than those with, at most, a lower secondary level qualification. Compared to the latter, VET graduates enjoyed a substantial employment premium. In most countries, the premium was above 15 percentage points. Slovakia, Bulgaria, Croatia, Germany, and Finland record the highest premiums (all above 35%). Estonia, Spain, Cyprus, Greece, and Portugal had the lowest (but still positive) premiums (all below 15%). In Portugal, the employment premium for IVET graduates over those with, at most, a lower secondary level qualification was at 5.4 percentage points. In the period 2014-2016 the employment premium for VET graduates over those low educational attainment was relatively stable (down by only 0.3 percentage points), with diversified trends at country level. Of particular magnitude were the drop in the Czech Republic (down by more 10.7 percentage points) and the increase in Greece (up by 5.9 percentage points).

In the non-EU countries for which data are available, the employment premiums range between 31.8 percentage points (the Former Yugoslav Republic of Macedonia) and 8.8 percentage points (Iceland).

Table 25: Employment premium for IVET graduates (over low-educated)

Arrows ↗ or ↘ signal a positive or negative trend based on more than two data points and of magnitude 0.1 per year or more. Trends based on more than two data points but of smaller magnitude are indicated by →; trends based on two points only are marked ▪. Trends are estimated by means of regression models.
(b) Break after 2010. Therefore baseline data not included. (u) Eurostat: "low reliability". (z) Eurostat: "not applicable". (e) Eurostat: "estimated".

Source: Cedefop calculations based on Eurostat, EU labour force survey.

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Annex 1: short description of indicators and additional notes

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Statistics and graphs Details

01/02/2018