Resources in vocational education and postschooling outcomes

Purpose The purpose of this paper is to examine the determinants of labour market outcomes after the initial vocational basic education ISCED 3. Designmethodologyapproach A multinomial logit model is used for examining the effect of school resources and other factors on students' postschooling outcomes defined as employment, further studies, nonemployment and dropping out. Analysis has been done by using unique linked register data on students, their parents, teachers, educational organisations and business companies in Finland. Findings The results indicate that teaching expenditures do not matter but teachers' characteristics have a role to play. Teachers with a university degree increase the employment probability of the students, whereas the formal competence of the teachers does not have such positive effects. The students' characteristics and performance in comprehensive schools play an important role in determining the outcomes. Local business conditions affect the outcomes of boys but less those of girls. The official quality evaluations adopted in recent years seem to pay attention especially to such aspects of education production that are important for providing capabilities for further studies but less so for employability. Originalityvalue Employability seems to be a great challenge to the initial vocational basic education. The findings for local business conditions give support to the view that measures of education policy do not suffice but need to be complemented with those of regional or employment policy, for example, policies aiming to increase regional mobility of the labour force. Such complementary tools are particularly important for boys.