From VET School to the Labour Market in Bosnia and Herzegovina: expected versus actual wages

Abstract This article analyses the differences between expected and actual wages of VET students and graduates. It uses a survey of VET students enrolled in schools in Bosnia and Herzegovina, and data about employed VET graduates from the Labour Force Survey. The model of determinants of wages, expected or actual, estimated separately on each dataset, reveals important differences in factors affecting individuals’ expectations and actual experience of the labour market. The results show that women have lower expected and actual wages than men. The same applies for those living in rural areas. The comparison between the two models suggests that VET students are well informed about their labour market (dis)advantages. The findings are similar to those reported in other studies that analysed expected and actual wages of university graduates.