School to work transitions and the impact of public expenditure on education
AbstractIn this paper we analyse how the decentralization process of the Spanish educational system has affected the school-to-work transition of youths over the last years. Using individual data from the Spanish Labor Force Survey for the period 1993-2002, we estimate a simultaneous equation model for the unemployment and employment hazard rates of these workers. We include public expenditure on education, at the regional level, as an explanatory factor in both hazards. Furthermore we account for cross-regional differences regarding the decision-making authority over education. Our results reveal that for both, university and non-university levels, public expenditure on education significantly improves the chances of Spanish youths in finding the first job after completing the educational system. Furthermore, it seems that the decentralization of university education has positive effects on youths’ labor market prospects in terms of exiting from unemployment. However, we find that such decentralization has no effects over the likelihood of loosing the first job. Finally, we find that public expenditure on non-university education reduces the individual likelihood of leaving the first job especially in those regions without competences in education.
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Bibliographic InfoPaper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2007/10.
Length: 36 pages
Date of creation: 2007
Date of revision:
educational expenditure; decentralization; unemployment hazard; emplyment hazard; gasto educativo; descentralización; tasa de salida del desempleo; tasa de despido.;
Other versions of this item:
- Blázquez, Maite & García, José Ignacio, 2007. "School To Work Transitions And The Impact Of Public Expenditure On Education," Working Papers in Economic Theory 2007/08, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
- Maite Blázquez & José Ignacio García Pérez, 2007. "School to Work Transitions and the Impact of Public Expenditure on Education," Working Papers 2007-13, FEDEA.
- I20 - Health, Education, and Welfare - - Education - - - General
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
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- Jenkins, Stephen P, 1995. "Easy Estimation Methods for Discrete-Time Duration Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 129-38, February.
- Paul Ryan, 2001. "The School-to-Work Transition: A Cross-National Perspective," Journal of Economic Literature, American Economic Association, vol. 39(1), pages 34-92, March.
- Richard R. Verdugo & Naomi Turner Verdugo, 1989. "The Impact of Surplus Schooling on Earnings: Some Additional Findings," Journal of Human Resources, University of Wisconsin Press, vol. 24(4), pages 629-643.
- Dario Sciulli & Marcello Signorelli, 2010. "University-to-work transitions: the case of Perugia," Quaderni del Dipartimento di Economia, Finanza e Statistica 77/2010, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
- Lopez-Mayan, Cristina & Nicodemo, Catia, 2012. "Vocational High School or Vocational College? Comparing the Transitions from School to Work," IZA Discussion Papers 6309, Institute for the Study of Labor (IZA).
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