Employability and Earnings Returns to Qualifications in Scotland

Scottish Social Inclusion and Lifelong Learning policies emphasize the need for individuals to become qualified through the acquisition of formal qualifications. Although education policy in Scotland is a devolved activity, there has been little investigation of the earnings and employment returns in the labour market. This paper examines the earnings and employability performance of qualifications using Labour Force Survey data from 1999-2003. School-leaving qualifications offer a greater chance of employment and attract significantly superior earnings' premia than intermediate-school and lower-level Further Education qualifications. There is also evidence that individuals who had followed a standard educational route to higher level qualifications may enjoy extra earnings' premia.