A disaggregated analysis of the long run impact of vocational qualifications

Practice area: Economics of Education | Education and Labour Markets | Further education | Labour market economics
Client: N/A
Published: February, 2013
Keywords: impact assessment modelling quantitative analysis

London Economics were commissioned by the Department for Business Innovation and Skills to undertake an assessment of the long term effect of vocational education and training on labour market outcomes. We combined information from the Individual Learner Record (ILR) between 2002/03 and 2005/06 on learner attainment, detailed earnings information (between 2003/04 and 2009/10) and employment information (between 1999/2000 and 2009/10) from HM Revenue and Customs, and benefit receipt and duration information (between 1999/00 and 2009/10) from the Department for Work and Pensions. Using this unique data set, we assessed the determinants of individuals completing the specific learning aims learners enrolled for at different levels within the National Qualification Framework. This was undertaken at an aggregate level (all learning aims, learning aims at different aggregate qualification levels, as well as at a disaggregated level. We also undertook the analysis at different Skills for Life levels, as well as for Apprenticeships.  In addition to the analysis relating to the determinants of attaining various learning aims, we also assessed the longer term labour market outcomes associated with attaining different qualifications. The outcome measures that we assessed included the annual earnings achieved by individuals, the proportion of the year the individual was in employment and the proportion of the year in receipt of a number of benefits (job Seekers Allowance and Incapacity Benefit).