From Classroom to Paycheck

Abstract

This paper explores the impact of Career and Technical Education (CTE) programs on wage outcomes in the U.S. labor market, particularly against a backdrop of shifting economic conditions and workforce needs. The study delves into how various CTE programs, specifically state-approved programs with stringent standards and federally- approved programs with more flexible requirements, shape the wage trajectories of high school students. The analysis is structured in two main phases: the first phase involves a detailed mapping of CTE courses to real-world occupations as categorized by the North American Industry Classification System (NAICS), highlighting the alignment -- or lack thereof -- between educational offerings and labor market demands. The second phase employs an Ordinary Least Squares (OLS) regression with fixed effects to analyze the influence of CTE program participation on wage outcomes across different industry sectors and counties. This approach allows for a nuanced examination of how local industry definitions affect the perceived effectiveness of CTE programs and underscores the complex trade-offs involved in prioritizing vocational training for immediate employment versus broader educational and career advancement opportunities. The findings reveal significant variability in the impact of CTE programs on wages, influenced by the specificity of job sectors and the breadth of skills taught, with implications for policy decisions aimed at enhancing the role of vocational education in fostering economic mobility.