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The effects of macroeconomic conditions on the education and employment outcomes of youth

Author

Listed:
  • Nicolas Hérault

    (University of Melbourne)

  • Weiping Kostenko

    (University of Melbourne)

  • Gary Marks

    (University of Melbourne)

  • Rezida Zakirova

    (University of Melbourne)

Abstract

This paper examines the impact of macroeconomic conditions on the education and employment outcomes of youths in school-to-work transition. The dataset is based on five cohorts from the Youth in Transition surveys (YIT) and the Longitudinal Surveys of Australian Youth (LSAY) and covers the period from 1985 to 2006, long enough to control explicitly for different macroeconomic conditions. The multivariate analyses show that both the unemployment rates, and to a lesser extent economic growth rates impact on youths’ education and employment outcomes. Although the effects vary significantly by gender and education level, overall the results reveal that poor macroeconomic conditions tend to drive young people out of full-time work and into inactivity or part-time work. Young men who did not complete secondary school suffer the largest increase in unemployment risks as the unemployment rate increases.

Suggested Citation

  • Nicolas Hérault & Weiping Kostenko & Gary Marks & Rezida Zakirova, 2012. "The effects of macroeconomic conditions on the education and employment outcomes of youth," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 15(1), pages 17-36.
    • Handle: RePEc:ozl:journl:v:15:y:2012:i:1:p:17-36
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    References listed on IDEAS

    as
    1. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    2. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2011. "Robust Inference With Multiway Clustering," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 29(2), pages 238-249, April.
    3. Bell, David N.F. & Blanchflower, David G., 2010. "Youth Unemployment: Déjà Vu?," IZA Discussion Papers 4705, Institute of Labor Economics (IZA).
    4. Nicolas Hérault & Weiping Kostenko & Gary Marks & Rezida Zakirova, 2012. "The effects of macroeconomic conditions on the education and employment outcomes of youth," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 15(1), pages 17-36.
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    Citations

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    Cited by:

    1. Boyd Hunter & Matthew Gray, 2012. "Indigenous Labour Supply following a Period of Strong Economic Growth," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 15(2), pages 141-159.
    2. Jochimsen Beate & Raffer Christian, 2018. "Herausforderungen bei der Messung von Wohlfahrt," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 67(1), pages 63-100, May.
    3. PN (Raja) Junankar, 2015. "The impact of the Global Financial Crisis on youth unemployment," The Economic and Labour Relations Review, , vol. 26(2), pages 191-217, June.
    4. Enrico MARELLI & Elena VAKULENKO, 2014. "Youth Unemployment in Italy and Russia: Aggregate Trends and the Role of Individual Determinants," Working papers of the Department of Economics - University of Perugia (IT) 0001/2014, Università di Perugia, Dipartimento Economia.
    5. Nicolas Hérault & Weiping Kostenko & Gary Marks & Rezida Zakirova, 2012. "The effects of macroeconomic conditions on the education and employment outcomes of youth," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 15(1), pages 17-36.
    6. Gary N. Marks, 2018. "Do the labour market returns to university degrees differ between high and low achieving youth? Evidence from Australia," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 52(1), pages 1-14, December.
    7. Junankar, Pramod N. (Raja), 2014. "The Impact of the Global Financial Crisis on Youth Labour Markets," IZA Discussion Papers 8400, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Employment; Unemployment; Wages; Intergenerational Income Distribution; Human Capital; Occupational Choice; Labor Productivity;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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