Inequalities in labour market outcomes of school leavers: Does educational track matter?

This paper uses propensity score matching to investigate the differences in labour market outcomes between graduates from general education and those from technical vocational education and training (TVET). The sixth and seventh waves of the Ghana living standard survey are pooled for analysis. Findings from the study suggest that graduates from TVET have weaker earnings compared to those from general education. The study shows that the average wage of graduates from TVET is 70% of that of graduates from general education. The study revealed that the wage advantages of general education over TVET education are only present for the group of individuals with tertiary education. We find that TVET education provides more labour market advantages than general education for individuals who cannot access tertiary education. Findings from the study point towards a widening of the wage gap between the two tracks of education over the life cycle.