Revisiting the wage effects of vocational education and training (VET) over the life cycle: The case of Thailand.

This paper estimates the potential impact of vocational education on wage differentials between vocational and general graduates over the life cycle in Thailand, using the national Labor Force Survey (LFS) from 2017 to 2022. The returns to vocational education are analyzed at three levels of education: upper secondary, diploma, and college. The inverse-probability-weighted regression adjustment (IPWRA) method is implemented to account for non-random assignment in choosing the academic track. The results show, on average, that vocational educated workers receive higher wages than those with general education, but it has no significant differences by comparing to university graduates in science and engineering with the same years of education. Additionally, the wage premiums associated to vocational education tend to increase at older ages. The empirical evidence corroborates the crucial role of vocational education in increasing long-term earnings and the number of technical-skilled workers in the Thai labor market. • Vocational educated workers receive higher wages than those with general education. • No significant differences by comparing to university graduates in science and engineering with the same years of education. • The wage premiums associated to vocational education tend to increase at older ages. • Females with tertiary vocational education are more likely to receive a higher long-term wage premium than males. [ABSTRACT FROM AUTHOR]