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The effect of summer jobs on post-schooling incomes

Author

Listed:
  • Alam, Moudud

    (Dalarna University)

  • Carling, Kenneth

    (Dalarna University)

  • Nääs, Ola

    (Dalarna University)

Abstract

In part because of high youth unemployment, students’ transition from school to work is an important policy and research topic. Public programs offering summer jobs or work while in high school as measures to smooth the transition is commonplace. The immediate effect of the programs on school attendance, school grades, and disposable income is well documented. However, their effect on the transition to the labor market remains unsettled, partly because of a potential selection bias in previous observational studies. In this paper, 2650 first graders of high school in Falun Council, Sweden, randomly allotted summer jobs via a program in the years of 1997-2003, are followed ten years after graduation. The program led to a substantially larger accumulation of work experience while in high school for offered (particularly weak academically performing) females, but not for offered males. Hence, the immediate program effect was heterogeneous. Females were used to estimate the causal effect of work experience while in high school on post-schooling incomes. The (statistically) significant estimate implies an elasticity of 0.4. Work experience while in high school seems to be of future benefit, but the elasticity is potentially inflated due to heterogeneous effects that we were unable to account for.

Suggested Citation

  • 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.
    • Handle: RePEc:hhs:ifauwp:2013_024
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    References listed on IDEAS

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    Cited by:

    1. Baert, Stijn & Rotsaert, Olivier & Verhaest, Dieter & Omey, Eddy, 2015. "A Signal of Diligence? Student Work Experience and Later Employment Chances," IZA Discussion Papers 9170, Institute of Labor Economics (IZA).
    2. Van Belle, Eva & Caers, Ralf & Cuypers, Laure & De Couck, Marijke & Neyt, Brecht & Van Borm, Hannah & Baert, Stijn, 2020. "What do student jobs on graduate CVs signal to employers?," Economics of Education Review, Elsevier, vol. 75(C).
    3. Ghada Barsoum & Ahmed Rashad, 2018. "Does Private Higher Education Improve Employment Outcomes? Comparative Analysis from Egypt," Public Organization Review, Springer, vol. 18(1), pages 125-142, March.
    4. Baert, Stijn & Neyt, Brecht & Omey, Eddy & Verhaest, Dieter, 2017. "Student Work, Educational Achievement, and Later Employment: A Dynamic Approach," IZA Discussion Papers 11127, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    experimental data; work experience; work while in school; selection bias;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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