This report is the latest in a series of studies that analyse the returns to FE learning using matched ILR-WPLS administrative data. A recent study in this series (Bibby et. al. 2014) uses the matched data to produce robust estimates of the labour market returns to achievement of learning aims whilst studying in English Further Education (FE), relative to those who have the same highest learning aim, but do not achieve. Whilst survey-based studies had suggested that some vocational qualifications (for instance, NVQ2) were associated with negligible, or even negative, earnings returns; Bibby et. al find that FE qualifications are associated with good labour market returns. The authors provide compelling evidence that the previous less favourable findings at Level 2 were a result of data limitations, rather than truly insignificant value added.
This report investigates labour market returns for a specific subgroup within the wider populations that form the focus of study within this ongoing programme of research. We identify the returns to FE Learning for the unemployed in England. For this study it is essential to use an approach to estimation of value added that is appropriate for learning at Level 2 and below, as many of the interventions targeted at the unemployed are at this level
