This paper focuses on the usability of vocational and academic qualifications in the German labour market. Our general assumption is that the competition between academic education and vocational qualifications is particularly high if there are extensive similarities or overlaps in the required skills and the activities to be performed in the workplace. In contrast, a complementary relationship between both types of qualifications is more characteristic if the companies differentiate the tasks and fields of work of vocationally and academically qualified employees. Former research shows various determining factors for the extent of competition or complementarity (e.g. industry sectors, specific personnel structures, engagement and strategy in the field of training). The usability of educational qualifications in the labour market can be estimated by various aspects (e.g. income, employment status, position). This paper presents companies’ and the individuals’ evaluation of the usability of academic and vocational qualifications. The theoretical background is formed by rational choice theory (Arrow, 1989; Esser, 1990) as well as the signaling (Spence, 1973) and screening (Stiglitz, 1975) approach. The mixed methods research concept contains curricula and vacancies analyses, case studies in selected sectors and a quantitative survey. This paper focuses on the analyses of the employment survey, which provides in depth insights on the individual perspective on labour market usability of educational qualifications. The results derive from analysing the data from the German BIBB/BAuA employment survey of 2018. We assessed employees’ educational decisions based on their returns on educational investment. To evaluate the rationality of individuals’ educational choices we calculated an OLS regression model containing variables associated with a positive effect on income (education and work experience) (Mincer, 1974). To gain more differentiated insights on the impact of career aspirations and educational choices we successively included variables into the model representing the individuals’ rationales as well as their socio-economic background and types of qualification (academic vs. occupational). Our results show that employability and income aspirations have a positive effect on individuals’ returns on educational investments, indicating that their educational decisions are rational. The presented results contribute to the debate on the relevance of vocational qualifications in the labour market, driven by the trends of academization in different occupational fields. The case studies and the company survey showed that vocationally qualified employees tend to hold more often operational management positions while academically qualified employees are more likely to hold strategic leadership positions (project management, HR management or controlling).

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