Labor Market Returns to Vocational Secondary Education

We study labor market returns to vocational versus general secondary education using a regression discontinuity design created by the centralized admissions process in Finland. Admission track increases initial annual income, and this benefit persists at least through mid-thirties, present discount value calculations suggest that it is unlikely life cycle will turn negative retirement. Moreover, admission does not increase likelihood of working jobs risk replacement automation or offshoring. Consistent with comparative advantage, we observe larger for people who express preference education. (JEL D15, I21, I26, J24, J31, O33)