Occupation-specific wage returns: shedding light on differentials between employees with a VET degree either with or without an Abitur

Abstract This study seeks to reveal the heterogeneity in occupation-specific wage returns among graduates of German vocational education and training (VET) system. We distinguish between VET with without a higher entrance certificate (i.e. an Abitur). To implement our hierarchical multi-level analyses, we exploit latest wave BIBB/BAuA Employment Survey from 2018. By estimating returns, gaps Abitur. Additionally, analyse several occupational characteristics show how they contribute groups. Our results that employees combining Abitur degree achieve than those across all occupations. Employees holding display greater inequality returns. Among characteristics, task composition is main driver differences