Vocational courses can boost lifetime earnings, economic research finds.
Research has found that school leavers at 16 who get a BTEC first as well as five good GCSEs go on to earn 6% more on average over their lifetime.
In the light of the Government’s review into vocational education, the Pearson Centre for Policy and Learning commissioned London Economics, a leading independent economic consultancy, to look at employment rates and earnings for people taking vocational courses. The resulting report also found a substantial net benefit to the taxpayer for many courses.
“Given that much of the negative debate around vocational courses is often based on opinion rather than evidence,” according to Pearson, the research “presents the alternative view – that high-quality vocational courses in subjects like engineering, information technology (IT), business and social care are valuable to young people, and also to the UK as a whole.”
Some other highlights from the research:
- Achieving a BTEC National can boost an individual’s lifetime earnings by up to £92,000, while a BTEC First can increase lifetime earnings by up to £42,000.
- Vocational qualifications offer a net benefit to the Government – with BTEC Nationals returning a net value of up to £54,000, City & Guilds Level 3 returning up to £41,000 and BTEC Firsts returning up to £28,000, based on increased employment rates and tax contributions.
- Vocational qualifications increase the likelihood of being in employment. Women and men holding BTEC Nationals are 8% and 5% more likely to be employed, compared to those holding just a Level 2 qualification.
- People holding BTEC qualifications at Levels 2, 3 and 4, the proportion that also hold five or more GCSEs at grades A*-C stands at 43%, 59% and 63% respectively. These rates of GCSE attainment are higher than for other routes of vocational qualification attainment.
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The full report can be found here: http://bit.ly/akKjGs
For more information about all Pearson’s events, publications and analysis, please visit the Pearson Centre for Policy and Learning.
Published 23 November 2010
