Sometimes it works: the effect of a reform of the short vocational track on school-to-work transition

Abstract:

Purpose
The purpose of this paper is to use the two-way fixed effect (TWFE) methodology to estimate the impact of the reform, exploiting its staggered implementation across regions. The analysis is restricted to graduates from the short vocational track before and after the reform.

Design/methodology/approach
This paper studies the impact on the length of school-to-work transition of a reform that extended from two to three years the short vocational track in Italy in the early 2000s.

Findings
The study finds that the reform had a positive impact and reduced school-to-work transition by around five months (a 24% reduction). Moreover, the new short vocational track proved to be extremely effective for migrants and females, whose school-to-work transition was reduced by 1.4 years and 0.9 years, respectively. In implementing the new short vocational track, some regions adopted a quasi-market organization in which private training institutions competed with public schools. This model proved to be more effective in shortening school-to-work transitions, in particular for migrants.

Originality/value
This study makes an important contribution to the literature on the labor-market effect of vocational education by showing that lengthening the short vocational track, and changing the overall content of curricula, can speed up school-to-work transition.

The Impact of Vocational Education Training Reform on Labor Market Outcomes and Marriage in Italy

Abstract:

This paper evaluates the impact of short vocational education training in Italy implemented in early 2000 on labor market outcomes and marital choice. The reform increase years of short vocational training from two years to one more additional year with more general curriculum. Using staggered events study, we find a positive permanent impact on employment. However, the effect is not permanent for wage. Both men and women get benefits from this reform, but women gain more from the reform. This improvement in labor market conditions has further consequences on married among men but not women. Our paper shows that the education reform improves not only labor market outcomes but also induces family formation.