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Educational Track, Networks and Labor Market Outcomes

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  • David Margolis

    (Crest)

  • Véronique Simonnet

    (Crest)

Abstract

Does the educational track (technical or professional, as opposed to general) provide individuals with networks that are useful in the labor market? And how do these networks help? In this paper, we consider the effect of the educational track on the means by which individuals find employment, the time it takes to find their first stable job and their earnings once the school-to-work transition is well established. Using data in French school leavers from 1969-1992, we find that the educational track significantly influences the means by which jobs are found, favoring networks in particular, as well as having an independent direct effect on the speed of transition into the labor market and later earnings. We also find that the means by which a job was found significantly affects the time to first job and earnings, and in a way that offsets the direct effect of the educational track on our outcome variables.

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Paper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2002-60.

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Date of creation: 2002
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Handle: RePEc:crs:wpaper:2002-60

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References

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  1. Rebick, Marcus E, 2000. "The Importance of Networks in the Market for University Graduates in Japan: A Longitudinal Analysis of Hiring Patterns," Oxford Economic Papers, Oxford University Press, vol. 52(3), pages 471-96, July.
  2. Donald W. K. Andrews & Moshe Buchinsky, 2000. "A Three-Step Method for Choosing the Number of Bootstrap Repetitions," Econometrica, Econometric Society, Econometric Society, vol. 68(1), pages 23-52, January.
  3. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, vol. 81(5), pages 1407-18, December.
  4. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, Econometric Society, vol. 47(1), pages 153-61, January.
  5. Mortensen, D. T. & Vishwanath, T., 1995. "Personal contacts and earnings: It is who you know!," Labour Economics, Elsevier, vol. 2(1), pages 103-104, March.
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Cited by:
  1. François Fontaine, 2004. "Do workers really benefit from their social networks?," Cahiers de la Maison des Sciences Economiques, Université Panthéon-Sorbonne (Paris 1) v04085, Université Panthéon-Sorbonne (Paris 1).
  2. Paola Giuliano, 2008. "Culture and the Family: An Application to Educational Choices in Italy," Rivista di Politica Economica, SIPI Spa, SIPI Spa, vol. 98(4), pages 3-38, July-Augu.
  3. Michèle Mansuy & Olivier Marchand, 2005. "Transitions From School to Work: Increasingly Complex Processes," Economie et Statistique, Institut National de la Statistique et des Etudes Economiques, vol. 378, pages 4-13, July.
  4. Cappellari, Lorenzo, 2004. "High School Types, Academic Performance and Early Labour Market Outcomes," IZA Discussion Papers 1048, Institute for the Study of Labor (IZA).
  5. Liliane Bonnal & David Clément & Sylvie Mendes, 2005. "Access To a First Job in The 1990s: The Case of Apprentices and Secondary School Pupils," Economie et Statistique, Institut National de la Statistique et des Etudes Economiques, vol. 378, pages 35-53, July.
  6. Michele Pellizzari, 2010. "Do Friends and Relatives Really Help in Getting a Good Job?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 63(3), pages 494-510, April.
  7. Anna Zaharieva, 2011. "Social Welfare and Wage Inequality in Search Equilibrium with Personal Contacts," Working Papers 459, Bielefeld University, Center for Mathematical Economics.
  8. DUGUET Emmanuel & SIMONNET Veronique, 2004. "The participation of couples in the labor market: an econometric analysis," Labor and Demography, EconWPA 0411005, EconWPA.
  9. Aleksander Kucel & Montserrat Vilalta-Bufi, 2012. "Why do university graduates regret their study program? A comparison between Spain and the Netherlands," Working Papers in Economics 279, Universitat de Barcelona. Espai de Recerca en Economia.
  10. Steve Bradley & Giuseppe Migali, 2012. "The direct and indirect effects of education policy on school and post school outcomes," Working Papers 24958831, Lancaster University Management School, Economics Department.
  11. Emmanuel Duguet & Véronique Simonnet, 2007. "Labor market participation in France: an asymptotic least squares analysis of couples’ decisions," Review of Economics of the Household, Springer, Springer, vol. 5(2), pages 159-179, June.

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