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Job search and academic achievement

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Author Info

  • van der Klaauw, Bas
  • van Vuuren, Aico

Abstract

The paper develops a structural model for the labor market behavior of students entering the labor market. We explicitly model the trade-off between devoting effort to studying and to job search. Furthermore, we allow for on-the-job search. The model is estimated using a unique data set of individuals who completed undergraduate education in the Netherlands between 1995 and 2001. Our estimation results show that labor market returns of high grades are low. Wage increases between jobs are explained by labor market friction rather than returns of early work experience. Our results indicate that a 1 percentage point decrease in the unemployment rate increases wage offers on average by 3 percent, but that the amount of job search effort is not very sensitive to business cycle fluctuations. Policy simulations show that study effort and hence academic achievement are much more sensitive to financial incentives than job search effort and labor market outcomes.

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Bibliographic Info

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 54 (2010)
Issue (Month): 2 (February)
Pages: 294-316

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Handle: RePEc:eee:eecrev:v:54:y:2010:i:2:p:294-316

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Web page: http://www.elsevier.com/locate/eer

Related research

Keywords: College to work Search effort Business cycle Structural estimation Labor market prospects Job applications;

References

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  1. James J. Heckman & Christopher J. Flinn, 1982. "New Methods for Analyzing Structural Models of Labor Force Dynamics," NBER Working Papers 0856, National Bureau of Economic Research, Inc.
  2. Topel, Robert H & Ward, Michael P, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 439-79, May.
  3. Bent Jesper Christensen & Rasmus Lentz & Dale T. Mortensen & George R. Neumann & Axel Werwatz, 2003. "On the Job Search and the Wage Distribution," CAM Working Papers 2004-09, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  4. Yoon, Bong Joon, 1981. "A Model of Unemployment Duration with Variable Search Intensity," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 599-609, November.
  5. Denis Fougère & Jacqueline Pradel & Muriel Roger, 2005. "Does Job-Search Assistance Affect Search Effort and Outcomes ? A Microeconometric Analysis of Public Versus Private Search Methods," Working Papers 2005-33, Centre de Recherche en Economie et Statistique.
  6. Edwin Leuven & Hessel Oosterbeek & Bas van der Klaauw, 2006. "The effect of financial rewards on students' achievement: Evidence from a randomized experiment," Artefactual Field Experiments 00078, The Field Experiments Website.
  7. Stern, Steven, 1989. "Estimating a Simultaneous Search Model," Journal of Labor Economics, University of Chicago Press, vol. 7(3), pages 348-69, July.
  8. Dale T. Mortensen, 1977. "Unemployment insurance and job search decisions," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 30(4), pages 505-517, July.
  9. Bowlus, Audra J & Kiefer, Nicholas M & Neumann, George R, 2001. "Equilibrium Search Models and the Transition from School to Work," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(2), pages 317-43, May.
  10. Stinebrickner Ralph & Stinebrickner Todd R., 2008. "The Causal Effect of Studying on Academic Performance," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-55, June.
  11. Bloemen, Hans G., 2003. "Job search, search intensity and labour market transitions : an empirical analysis," Serie Research Memoranda 0026, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  12. Zvi Eckstein & Kenneth I. Wolpin, 1999. "Why Youths Drop Out of High School: The Impact of Preferences, Opportunities, and Abilities," Econometrica, Econometric Society, vol. 67(6), pages 1295-1340, November.
  13. Alan B. Krueger & Andreas Mueller, 2008. "Job Search and Unemployment Insurance: New Evidence from Time Use Data," Working Papers 1093, Princeton University, Department of Economics, Center for Economic Policy Studies..
  14. Wolpin, Kenneth I, 1987. "Estimating a Structural Search Model: The Transition from School to Work," Econometrica, Econometric Society, vol. 55(4), pages 801-17, July.
  15. Ferrall, Christopher, 1997. "Unemployment Insurance Eligibility and the School-to-Work Transition in Canada and the United States," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(2), pages 115-29, April.
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Citations

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Cited by:
  1. S. Baert & B. Cockx, 2013. "Pure Ethnic Gaps in Educational Attainment and School to Work Transitions. When Do They Arise?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 13/832, Ghent University, Faculty of Economics and Business Administration.
  2. Flabbi, Luca & Mabli, James, 2012. "Household Search or Individual Search: Does It Matter? Evidence from Lifetime Inequality Estimates," IZA Discussion Papers 6908, Institute for the Study of Labor (IZA).
  3. Thomas van Huizen & Janneke Plantenga, 2013. "Job Search Behaviour and Time Preferences: Evidence from the Netherlands," Working Papers 13-03, Utrecht School of Economics.
  4. Bart COCKX & Muriel DEJEMEPPE & Andrey LAUNOV & Bruno VAN DER LINDEN, 2011. "Monitoring, Sanctions and Front-Loading of Job Search in a Non-Stationary Model," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011042, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  5. Simona Iammarino & Elisabetta Marinelli, 2012. "Education-Job (Mis)Matching And Interregional Migration: Italian University Graduates’ Transition To Work," Working Papers 8, Birkbeck Centre for Innovation Management Research, revised Sep 2012.
  6. Muriel Dejemeppe & Bruno Van der Linden & Andrey Launov & Bart Cockx, 2011. "Monitoring and Sanctions in a Non-Stationary Structural Job-Search Model," 2011 Meeting Papers 501, Society for Economic Dynamics.

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