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The purpose of this paper is to examine the dynamic relationship between policies related to educational provision and both educational participation and occupational outcomes in Brazil, using PNAD and RAIS-Migra data.

Outcomes are examined using: static multinomial logit analysis, and structural dynamic discrete choice modelling. The latter approach, coupled with the quality of the RAIS-Migra data source, allows the authors to evaluate the education policy impacts over time.

The main results show that the education level raises the propensity that the individual will be in formal sector work or still in education, and reduces the probability of the other outcomes. Transition into non-manual formal sector work following education may, however, occur via a spell of manual work.

This is the first study of occupational destination to be conducted in a rapidly developing country using high-quality panel data and appropriate dynamic methods, and as such makes an important contribution in confirming that increased supply of highly skilled workers enhances occupational attainment in this context.