New Study Shows Engineering Diploma Graduates Earn 24% More Within Five Years
Translated & summarized from Walla by baba
A new study by the Ministry of Labor and the Myers-JDC-Brookdale Institute found that graduates of vocational engineering programs in Israel earn approximately 24% more five years after completing their studies. The research, which analyzed administrative data, also indicated a 16% salary return after 11 years. The programs, overseen by Ma'of, are about two years long and focus on practical skills. Specific fields like software engineering showed the highest returns, with some programs outperforming academic degrees in certain humanities fields.
The story in 6 lines · by baba
- Vocational engineering graduates in Israel see a 24% salary increase within five years, a new study found.
- The study by the Ministry of Labor and Myers-JDC-Brookdale Institute analyzed returns for Ma'of program graduates.
- Software engineering graduates reported the highest salary return at 56% within five years.
- Some vocational programs offer higher returns than academic degrees in education and humanities.
- Salary returns vary significantly based on gender and specific population groups, the study noted.
- New AI-related and cybersecurity programs are being introduced to meet market demands.
A new study by the Ministry of Labor and the Myers-JDC-Brookdale Institute reveals that graduates of vocational engineering programs overseen by the government's "Ma'of" (The Government Institute for Technological and Scientific Training) experience a significant salary increase. The research indicates a 24% rise in earnings five years after completing their studies, with a positive return of approximately 16% even after 11 years.
Ma'of trains about 10,000 engineering diploma holders annually across 74 colleges nationwide. This comprehensive study, based on administrative data from the Central Bureau of Statistics and the Ministry of Labor, provides the first empirical assessment of the financial returns from these programs. The academic year for Ma'of colleges began on October 18th, with around 40,000 students enrolled in 75 institutions, pursuing studies in 20 in-demand technological fields.
The study also noted the impact of artificial intelligence on the job market, observing an increase in demand for engineering diploma holders alongside a decrease in demand for software professions, reflected in student enrollment trends. New specialized programs in cybersecurity, safety, AI applications, and updated tracks in civil, mechanical, and industrial engineering are expected to launch.
Engineering diploma programs typically last about two years, emphasizing practical application and job market integration, leading to high employment and salary rates. Specific fields showed substantial returns: software engineering (56%), civil engineering (31%), mechanical engineering (23%), electrical engineering (19%), electronics engineering (19%), and water technologies (18%). Notably, the returns for some Ma'of programs were found to be higher than those for academic degrees in education, humanities, and social sciences, despite the shorter duration of vocational studies.
The research also highlighted disparities in returns based on gender and population groups. For instance, ultra-Orthodox women showed particularly high returns in software engineering, while ultra-Orthodox men excelled in civil, electrical, and mechanical engineering. Among Arab women, medical instrumentation stood out, and among Arab men, electronics and mechanical engineering were prominent.
Ministry of Labor Director General Robi Shemesh stated that Ma'of programs directly link quality vocational training with economic needs, emphasizing that the return is measured not only by salary but also by rapid integration into stable employment and career advancement. Oren Tirosh, a labor market researcher at the Myers-JDC-Brookdale Institute, added that technological education significantly contributes to graduates' earnings, but acknowledged considerable differences between fields and demographics, stressing the importance of data-driven policy decisions.
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