The Effects of High School Career and Technical Education on Employment, Wages, and Educational Attainment

Abstract

I investigate the effects of high school career and technical education (CTE) on later-life outcomes, by constructing a dynamic structural model that instruments for curricula choice using variation in CTE opportunities and local labor market controls. Estimates derived from national longitudinal data suggest that trade CTE, relative to general education and business CTE, improves wages and employment opportunities while increasing high school graduation but decreasing university graduation propensities. Policy simulations suggest that incorporating vocational certification into CTE would improve labor market outcomes. Simulations also suggest that strict high school tracking would increase the dropout rate but improve outcomes for graduates at the expense of their high school utility.