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Working while enrolled in a university: does it pay?

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  • Hakkinen, Iida

Abstract

Working while studying at university increases the time-to-degree and may interfere with learning, but the acquired work experience may also improve employment opportunities and increase wages after the graduation. This study examines how university students' employment decisions affect their labor market success after the graduation. The study is based on an individual panel data set of Finnish university students. The data set covers the years 1987-1998, which was a period of significant changes in the Finnish labor market. The study finds that in-school work experience increases graduates' earnings at the beginning of the career, but there are no statistically significant persistent effects on employment or earnings after controlling for the selection bias in work experience acquisition.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 13 (2006)
Issue (Month): 2 (April)
Pages: 167-189

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Handle: RePEc:eee:labeco:v:13:y:2006:i:2:p:167-189

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

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  1. Joshua Angrist & Alan B. Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," NBER Working Papers 8456, National Bureau of Economic Research, Inc.
  2. Ruhm, Christopher J, 1997. "Is High School Employment Consumption or Investment?," Journal of Labor Economics, University of Chicago Press, vol. 15(4), pages 735-76, October.
  3. Todd R. Stinebrickner & Ralph Stinebrickner, 2000. "Working During School and Academic Performance," UWO Department of Economics Working Papers 20009, University of Western Ontario, Department of Economics.
  4. Ronald G. Ehrenberg & Daniel R. Sherman, 1987. "Employment While in College, Academic Achievement, and Postcollege Outcomes: A Summary of Results," Journal of Human Resources, University of Wisconsin Press, vol. 22(1), pages 1-23.
  5. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
  6. V. Joseph Hotz & Lixin Xu & Marta Tienda & Avner Ahituv, 1999. "Are There Returns to the Wages of Young Men from Working While in School?," JCPR Working Papers 101, Northwestern University/University of Chicago Joint Center for Poverty Research.
  7. Tuulia Hakola, 2002. "Economic Incentives and Labour Market Transitions of the Aged Finnish Workforce," Research Reports 89, Government Institute for Economic Research Finland (VATT).
  8. Finnie, Ross & Frenette, Marc, 2003. "Earning differences by major field of study: evidence from three cohorts of recent Canadian graduates," Economics of Education Review, Elsevier, vol. 22(2), pages 179-192, April.
  9. Rumberger, Russell W. & Thomas, Scott L., 1993. "The economic returns to college major, quality and performance: A multilevel analysis of recent graduates," Economics of Education Review, Elsevier, vol. 12(1), pages 1-19, March.
  10. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352.
  11. Jerry Hausman, 2001. "Mismeasured Variables in Econometric Analysis: Problems from the Right and Problems from the Left," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 57-67, Fall.
  12. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, July.
  13. Light, Audrey, 2001. "In-School Work Experience and the Returns to Schooling," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 65-93, January.
  14. Häkkinen, Iida & Uusitalo, Roope, 2003. "The Effect of a Student Aid Reform on Graduation: A Duration Analysis," Working Paper Series 2003:8, Uppsala University, Department of Economics.
  15. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
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Cited by:
  1. Pauline Domingo, 2007. "Travail en cours d'études, échec et insertion professionnelle : le cas des DEUG non diplômés," Documents de travail du Centre d'Economie de la Sorbonne r07007, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  2. Suhonen, Tuomo, 2013. "Are there returns from university location in a state-funded university system?," Regional Science and Urban Economics, Elsevier, vol. 43(3), pages 465-478.
  3. Blomquist, Sören & Christiansen, Vidar, 2004. "Taxation and Heterogeneous Preferences," Working Paper Series 2004:9, Uppsala University, Department of Economics.
  4. Aronsson, Thomas & Blomquist, Sören, 2004. "Redistribution and Provision of Public Goods in an Economic Federation," Working Paper Series 2004:4, Uppsala University, Department of Economics.
  5. Barbara S. Grave & Katja Goerlitz, 2012. "Wage differentials by field of study -- the case of German university graduates," Education Economics, Taylor & Francis Journals, vol. 20(3), pages 284-302, March.
  6. Giorgia Casalone & Carmen Aina, 2011. "Does time-to-degree matter? The effect of delayed graduation on employment and wages," Working Papers 38, AlmaLaurea Inter-University Consortium.
  7. Andini, Corrado & Pereira, Pedro T., 2007. "Full-time Schooling, Part-time Schooling, and Wages: Returns and Risks in Portugal," IZA Discussion Papers 2651, Institute for the Study of Labor (IZA).
  8. Alam, Moudud & Carling, Kenneth & Nääs, Ola, 2013. "The effect of summer jobs on post-schooling incomes," Working Paper Series 2013:24, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  9. Nordström Skans, Oskar, 2004. "Scarring effects of the first labour market experience: A sibling based analysis," Working Paper Series 2004:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  10. repec:hal:journl:halshs-00144366 is not listed on IDEAS
  11. Regula Geel & Uschi Backes-Gellner, 2010. "Earning While Learning: Labor Market Returns to Student Employment During Tertiary Education," Economics of Education Working Paper Series 0049, University of Zurich, Institute for Strategy and Business Economics (ISU).

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