Abstract
Vocational education is a large part of the high school curriculum, yet we have little understanding of what drives vocational enrollment or whether these courses help or harm early careers. To address this deficiency, we develop a framework for curriculum choice, taking into account ability and preferences for academic and vocational work. We test model predictions using detailed transcript and earnings information from the National Longitudinal Survey of Youth (1997). Our results are twofold. First, students positively sort into vocational courses, suggesting that the belief that low-ability students are funneled into vocational coursework is unlikely true. Second, we find higher earnings among students taking more upper-level vocational courses—a nearly 2 percent wage premium for each additional year, yet we find no gain from introductory vocational courses. These results suggest: (1) policies limiting students' ability to take vocational courses may not be welfare-enhancing, and (2) the benefits of vocational coursework accrue to those who focus on depth over breadth.