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The Effect of Labor Market Polarization on the College Students' Employment

Author

Listed:
  • Sungyup Chung

    (Research Department (former Economist, Economic Research Institute), The Bank of Korea)

Abstract

This paper aims to assess the effect of the labor market environment on various aspects of college students' job market related behaviors. In some cases, college students hide or evade their unemployment status by extending school registration or transferring to another school. By estimating the effect of the macroeconomic variables on college students' labor market related outcomes, it is found that labor market polarization has a significant effect on both the nominal unemployment and the hidden actions of college students. It implies that the labor market structure is a key element in understanding youth employment, and the youth labor policy should focus more on micro and institutional level of labor market reform.

Suggested Citation

  • Sungyup Chung, 2017. "The Effect of Labor Market Polarization on the College Students' Employment," Working Papers 2017-4, Economic Research Institute, Bank of Korea.
    • Handle: RePEc:bok:wpaper:1704
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    File URL: http://papers.bok.or.kr/RePEc_attach/wpaper/english/wp-2017-4.pdf
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    More about this item

    Keywords

    Labor market; Youth unemployment; Cox proportional hazard model;
    All these keywords.

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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