Added Title

DLSU-AKI POLICY BRIEF, 2023-12-015

College

School of Economics

Document Type

Policy Brief

Publication Date

12-2023

Place of Publication

DLSU-Angelo King Institute, Room 223, LS building, 2401 Taft Avenue, Manila 0922

Abstract

Technical Vocational Education and Training (TVET) was institutionalized by the Philippine government in order to fill in the gaps left by the higher education system in transitioning students to the formal workforce. However, recent studies suggest that TVET graduates have a difficult time gaining employment and wage increases because of skills supply and demand mismatches and the devaluation of TVET degrees. The mismatch is observed through the high unemployment rates of TVET graduates and various job availabilities that could not be filled up by these graduates due to the incompatibility of skills formation with job requirements which is evident in several sectors including ICT, Health Services, Agriculture, and Tourism. This paper used Naive Bayesian Regression and Propensity Score Matching methods to measure the direction and magnitude of labor market outcome differentials between TVET and High School graduates, as well as the Blinder Oaxaca Decomposition to measure how much endogenous and exogenous sources explain said wage and employment differentials.

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Disciplines

Education Economics | Vocational Education

Keywords

Philippines; Employment; Education; Vocational Training and Education

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