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Working while enrolled in a university: Does it pay?

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  • Häkkinen, Iida

    ()
    (Department of Economics)

Abstract

Working while studying at university increases the time-to-degree and may interfere with learning, but the acquired work experience may also improve employment opportunities and increase wages after the graduation. This study examines how university students' employment decisions affect their labor market success after the graduation. The study is based on an individual panel data set of Finnish university students. The data set covers the years 1987-1998, which was a period of significant changes in the Finnish labor market. The study finds that in-school work experience increases graduates' earnings at the beginning of the career, but there are no statistically significant persistent effects on employment or earnings after controlling for the selection bias in work experience acquisition.

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Bibliographic Info

Paper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 2004:1.

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Length: 37 pages
Date of creation: 29 Jan 2004
Date of revision:
Publication status: Forthcoming in Labour Economics.
Handle: RePEc:hhs:uunewp:2004_001

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Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
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Web page: http://www.nek.uu.se/
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Keywords: university; in-school work; earnings;

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References

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  1. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
  2. Ronald G. Ehrenberg & Daniel R. Sherman, 1985. "Employment While in College, Academic Achievement and Post-College Outcomes: A Summary of Results," NBER Working Papers 1742, National Bureau of Economic Research, Inc.
  3. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  4. V. Joseph Hotz & Lixin Xu & Marta Tienda & Avner Ahituv, 1999. "Are There Returns to the Wages of Young Men from Working While in School?," NBER Working Papers 7289, National Bureau of Economic Research, Inc.
  5. Todd Stinebrickner & Ralph Stinebrickner, 2001. "Working During School and Academic Performance," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20011, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  6. Joshua D. Angrist & Alan B. Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 69-85, Fall.
  7. Christopher J. Ruhm, 1995. "Is High School Employment Consumption or Investment?," NBER Working Papers 5030, National Bureau of Economic Research, Inc.
  8. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352.
  9. Light, Audrey, 2001. "In-School Work Experience and the Returns to Schooling," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 65-93, January.
  10. Häkkinen, Iida & Uusitalo, Roope, 2003. "The Effect of a Student Aid Reform on Graduation: A Duration Analysis," Working Paper Series 2003:8, Uppsala University, Department of Economics.
  11. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, octubre-d.
  12. Jerry Hausman, 2001. "Mismeasured Variables in Econometric Analysis: Problems from the Right and Problems from the Left," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 57-67, Fall.
  13. Finnie, Ross & Frenette, Marc, 2003. "Earning differences by major field of study: evidence from three cohorts of recent Canadian graduates," Economics of Education Review, Elsevier, vol. 22(2), pages 179-192, April.
  14. Rumberger, Russell W. & Thomas, Scott L., 1993. "The economic returns to college major, quality and performance: A multilevel analysis of recent graduates," Economics of Education Review, Elsevier, vol. 12(1), pages 1-19, March.
  15. Tuulia Hakola, 2002. "Economic Incentives and Labour Market Transitions of the Aged Finnish Workforce," Research Reports 89, Government Institute for Economic Research Finland (VATT).
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Citations

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Cited by:
  1. repec:hal:journl:halshs-00144366 is not listed on IDEAS
  2. Aronsson, Thomas & Blomquist, Sören, 2004. "Redistribution and Provision of Public Goods in an Economic Federation," Working Paper Series 2004:4, Uppsala University, Department of Economics.
  3. Suhonen, Tuomo, 2013. "Are there returns from university location in a state-funded university system?," Regional Science and Urban Economics, Elsevier, vol. 43(3), pages 465-478.
  4. Regula Geel & Uschi Backes-Gellner, 2010. "Earning While Learning: Labor Market Returns to Student Employment During Tertiary Education," Economics of Education Working Paper Series 0049, University of Zurich, Institute for Strategy and Business Economics (ISU).
  5. Katja Görlitz & Barbara S. Grave, 2012. "Wage Differentials by Field of Study – The Case of German University Graduates," Ruhr Economic Papers 0316, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  6. Pauline Domingo, 2007. "Travail en cours d'études, échec et insertion professionnelle : le cas des DEUG non diplômés," Documents de travail du Centre d'Economie de la Sorbonne r07007, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  7. Andini, Corrado & Pereira, Pedro T., 2007. "Full-time Schooling, Part-time Schooling, and Wages: Returns and Risks in Portugal," IZA Discussion Papers 2651, Institute for the Study of Labor (IZA).
  8. Blomquist, Sören & Christiansen, Vidar, 2004. "Taxation and Heterogeneous Preferences," Working Paper Series 2004:9, Uppsala University, Department of Economics.
  9. Nordström Skans, Oskar, 2004. "Scarring effects of the first labour market experience: A sibling based analysis," Working Paper Series 2004:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  10. Giorgia Casalone & Carmen Aina, 2011. "Does time-to-degree matter? The effect of delayed graduation on employment and wages," Working Papers 38, AlmaLaurea Inter-University Consortium.
  11. 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.

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