The Impact of TVET (technical and vocational education and training) on income growth and employment of trainees

Abstract

After the introduction of human capital theory, education and training is regarded as an instrument for enhancing human capital; and it developed into concept of TVET, Technical and Vocational Education and Training. The existing studies are conflicting on the effectiveness of TVET. Some scholars argue TVET stimulates economic growth, improves employment and wage of workers, and reduces poverty. However, due to the occupation-specific characteristics of skills developed from TVET, other scholars argue that the effectiveness of TVET last only for short periods. This study is to find the factors of TVET that can be effective in matching skills and job. This study uses the data collected from Kenya Life Panel Survey (KLPS), which is a longitudinal dataset of 7,527 respondents from 2003 to 2019. The data includes education, health, socioeconomic, demographic and other outcomes from students of primary schools in western Kenya. This study used the panel data studies to find the short-term and long-term effect from TVET. This study finds that unemployed trainees have higher employability in the short run over employed trainees. According to the result of this study, however, trainees without work experience and training experience have a higher income growth rate in short run compared to experienced trainees It contradicts the assumption of TVET in that work-related experience strengthens the individual’s skill and thereby reflected in higher income. This study explained the findings can be attributable to mismatch between skill and job and limitation of training at individual-level. Also, this study suggests recommendations for future research