Comparing labor market performance of vocational and general school graduates in Indonesia: insights from stable and crisis conditions

Abstract

Abstract This study seeks to investigate the association between distinct tracks of secondary education—namely, vocational school (Sekolah Menengah Kejuruan, SMK) and general school (Sekolah Menengah Atas, SMA)—and two key labor market outcomes: the duration required for graduates to attain their initial employment and their resilience in the face of pandemic, as measured by changes in average monthly income. While the former sheds light on the outcome under typical circumstances, the latter offers valuable insights into the outcome during periods of crisis. Focused on Indonesia, this research employs Heckman two-step model alongside ordinary least square (OLS) for the first outcome and ordered probit regression for the second. The research draws upon data extracted from the 2021 National Labor Force Survey (Survey Angkatan Kerja Nasional, SAKERNAS). Our results suggest that SMK provides an advantage in securing initial employment compared to SMA, with SMK graduates entering the workforce earlier than their counterparts. Moreover, in terms of resilience during the pandemic, as evidenced by changes in income, SMK graduates exhibit greater resilience, with a higher likelihood of maintaining or even increasing their income compared to SMA graduates. These findings offer valuable implications for both theoretical understanding and practical considerations.