The Earnings and Employment Effects of Young People's Vocational Training in Britain

We examine the longer run effects of youth training using the Youth Cohort Study Cohort III. These data follow individuals up to the age of 23 while previous studies typically analyse younger people. The problem of attrition is addressed by using an ‘item non‐response’ variable as an instrument to predict drop‐out. We estimate earnings and employment equations to analyse the effects of training. The results contrast with those from previous studies by suggesting there are no adverse employment or earnings effects from government‐sponsored training. We find significant returns to quality training such as degrees and apprenticeships.