Academic qualification prior to completing vocational training is generally higher among the RP trainees compared to the DTS trainees, and this difference is statistically significant. Among former trainees in the RPs, one out of four has enrolled in college but stopped, and one out of three graduated from college before starting their vocational training.

Finally, the manner in which the DTS programs are implemented in schools and companies was evaluated (Table 6). The data demonstrate that the total duration to complete TVI-based learning and in-company training is about 1.4 years, which is substantially longer than the average duration of the RPs training. About 70 percent of the DTS trainees were supervised during their in-company training and benefitted from support in mastering work processes, while a smaller proportion learned independently or from peer trainees. At graduation, about 70 percent of trainees had obtained the National Certificate (NC)<sup>24</sup> level 2 or above while 6 percent earned the NC level 1 or Certificate of Competency (COC)<sup>25</sup> distinction. The higher level NCs generally have certificate credentials in the labor market while the other certificates have limited values by themselves. About one-third did not earn any certificate.

# V. Estimation Results on Labor Market Outcomes of DTS

Labor market outcomes of the DTS compared to the RPs were estimated using the survey data. Figures 4 through 7 present estimated coefficients in the labor wage or employment equations with selected independent variables of interest (see the previous section for the detailed analytical approach). In the specified figures, bars in solid colors and faded colors correspond with statistical significance or insignificance, respectively. Tables 1.1 to 1.6 in the annex include detailed estimation results.

A simple linear regression model was adopted by changing key control variables such as enrollment year, the TVIs, or both, and supposing substantial effects on the outcomes. This reflects the programs’ possible heterogeneity. The same regression was estimated by including the interaction term to assess the relationship between the standardized general average HS scores in the DTS versus other RPs. Additional characteristics such as gender, work experience, and years of schooling are also included in the specification.

The heterogeneity of TVIs and programs affects the estimation results of returns to the DTS. Estimates on labor earnings were assessed by calculating the log of graduates’ latest monthly salary (Figure 4). The results highlight that the coefficient on the DTS programs is positive and significant in the simplest specification, in which neither the controlled TVI variable nor enrollment year is included (see Column 2 in Table 1.1). The result becomes insignificant when the controlled TVI variable and enrollment year are included in the specification, taking different school-specific characteristics into account (see Columns 3 and 4 in Table 1.1). Different schools

> 24 The NC is issued when a candidate has demonstrated competence in all units of competency that comprise a qualification (TESDA).

> 25 The COC is issued to individuals who have satisfactorily demonstrated competence on a single or cluster of units of competency (TESDA).

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