Returns to higher vocational education in Portugal: the case of TeSP courses

Abstract

TeSP courses (Curso Técnico Superior Profissional) were introduced in Portugal in 2014. This study analyzes the labor market outcomes of TeSP graduates, focusing on employment patterns, wage premiums, educational fields and work areas alignment. Using data from Quadros de Pessoal dataset, the analysis finds that only 15.4% of TeSP graduates are employed in formal sectors, with 7% of them pursuing bachelor’s degrees. TeSP graduates experience a wage premium of 14.34% compared to those with lower education, though it is smaller than for bachelor’s holders (31.52%). The study highlights the role of TeSP courses in bridging vocational and higher education.