In segmented labour markets like those of Brazil and India, vocational training policies tend to reinforce labour market inequality. This review looks at VET policies and institutions in order to understand its potential as a tool for inequality reduction in the labour market. As skills are an important determinant of position in a hierarchy of jobs, they act as a basis for differentiating the workforce and thus are linked to labour market inequality. While the data for the two countries are not directly comparable, it is clear that in both Brazil and India formal VET is concentrated among the better educated
