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Vocational Education, Manufacturing, and Income Distribution : International Evidence and Case Studies

Author: Joshua Aizenman; Yothin Jinjarak; Nam Ngo; Ilan Noy; National Bureau of Economic Research.
Publisher: Cambridge, Mass. National Bureau of Economic Research 2017.
Series: Working paper series (National Bureau of Economic Research), no. w23950.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
Economic integration has brought about not only benefits and opportunities but also required adjustment, especially for the youth entering the labor force. The lower growth rates characterizing the post Global Financial Crisis era and the concerns about income inequality put to the fore the degree that better targeted investment in human capital may ameliorate the challenges facing the working poor. Using  Read more...
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Details

Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Joshua Aizenman; Yothin Jinjarak; Nam Ngo; Ilan Noy; National Bureau of Economic Research.
OCLC Number: 1008871922
Notes: October 2017.
Description: 1 online resource
Series Title: Working paper series (National Bureau of Economic Research), no. w23950.
Responsibility: Joshua Aizenman, Yothin Jinjarak, Nam Ngo, Ilan Noy.

Abstract:

Economic integration has brought about not only benefits and opportunities but also required adjustment, especially for the youth entering the labor force. The lower growth rates characterizing the post Global Financial Crisis era and the concerns about income inequality put to the fore the degree that better targeted investment in human capital may ameliorate the challenges facing the working poor. Using cross-country data, we find the association between the income shares of the working poor, dependence on manufacturing sector, and the availability of vocational education. Conditioning on tertiary educational attainment, improved access to better vocational education will probably contribute more than large increase in regular college attainment. Comparing the US to Germany suggests that pushing more students to BA granting colleges may no longer be the most efficient way to deal with the challenges caused by the decline in manufacturing employment affecting in particular lower-income households. We also note that a tracking of technical training and educational budget, shown in the case of Vietnam in comparison to Thailand, as well as government subsidies for reskilling of labor force throughout their career in Singapore, is a potential explanation for their relative manufacturing competitiveness.

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