Bhorat, H., Kimani, E., (2017) The role of Post-school Education and Training institutions in predicting labour market outcomes.

This report offers empirical estimates of the association between the type of education institution attended, and the probability of employment and level of earnings of graduates in the South African labour market. Using the first three waves of the National Income Dynamic Study (NIDS), we find that an increase in years of schooling increases employment probability, and there is a significant premium for individuals with higher education. Yet it is skills level, often measured by education level attained, which is a more important determinant of wage, relative to occupation. Skills inflation might be manifesting in
increased selectivity in the employment of graduates, by criteria such
as tertiary education qualification, and institution attended. It is a positive fact that universities are associated with a higher conditional probability of employment and massive returns to earnings, in that racial discrimination has been eroded. But it does suggest that TVET colleges require significant improvements to ensure higher employment outcomes, and an increase in the returns
to earnings of their graduates.