High and steady or low and rising? Life-cycle earnings patterns in vocational and general education

In this paper, we compare experience-earnings profiles of employees with vocational and general education background in Germany, the Netherlands and the United Kingdom, three countries with fundamentally different education systems. Using Mixed-EffectsLinear Regression Models we show that earnings of vocationally educated employees are higher in the initial phase of their career. However, those with a general education background catch up over time in the labor market. Life-cycle differences in earnings are more pronounced in Germany than in the United Kingdom and the Netherlands.

Netspar, Network for Studies on Pensions, Aging and Retirement, is a thinktank and knowledge network. Netspar is dedicated to promoting a wider understanding of the economic and social implications of pensions, aging and retirement in the Netherlands and Europe.

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