To Study or to Work? Education and Labour Market Participation of Young People in Poland
AbstractThis paper proposes Heckprobit estimates of the determinants of labour market participation of a sample of young (15-30) Poles, controlling for the sample selection bias caused by excluding those in education. There is evidence of sample selection bias in the case of young men, suggesting that they obey more than women to economic factors in making their educational choices. Education is an important determinant of the success in the labour market. The instrumental variables used in the selection equation – the local unemployment rate, expected lifetime earnings and the opportunity cost of education – have a statistically significant impact on the probability to be in education. In contrast with several previous studies relative to mature market economies, in high unemployment voivodships young people prefer to seek a job, rather than studying. In turn, this contributes to make regional unemployment persistent.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1793.
Length: 33 pages
Date of creation: Oct 2005
Date of revision:
Publication status: published in: Eastern European Economics, 2012, 50 (3), 49-78
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Find related papers by JEL classification:
- C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- I2 - Health, Education, and Welfare - - Education
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- P3 - Economic Systems - - Socialist Institutions and Their Transitions
- P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-10-22 (All new papers)
- NEP-EDU-2005-10-22 (Education)
- NEP-EEC-2005-10-22 (European Economics)
- NEP-LAB-2005-10-22 (Labour Economics)
- NEP-TRA-2005-10-22 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heckman, James J, 1976. "A Life-Cycle Model of Earnings, Learning, and Consumption," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages S11-44, August.
- Kevin Denny & Colm Harmon, 2000.
"The impacts of education and training on the labour market experiences of young adults,"
IFS Working Papers
W00/08, Institute for Fiscal Studies.
- Denny, K.J. & Harmon, C.P., 2000. "The Impact of Education and Training on the Labour Market Experiences of Yound Adults," Papers 00/1, College Dublin, Department of Political Economy-.
- Michael P. Keane & Kenneth I. Wolpin, 1995.
"The career decisions of young men,"
559, Federal Reserve Bank of Minneapolis.
- repec:ese:iserwp:2004-22 is not listed on IDEAS
- Arulampalam, Wiji & Stewart, Mark B, 1995. "The Determinants of Individual Unemployment Durations in an Era of High Unemployment," Economic Journal, Royal Economic Society, vol. 105(429), pages 321-32, March.
- Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
- Anna Maria Ferragina & Francesco Pastore, 2008.
"Mind The Gap: Unemployment In The New Eu Regions,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 22(1), pages 73-113, 02.
- Giannelli, Gianna Claudia & Monfardini, Chiara, 2000.
"Joint Decisions on Household Membership and Human Capital Accumulation of Youths - The role of expected earnings and local markets,"
IZA Discussion Papers
191, Institute for the Study of Labor (IZA).
- Gianna Claudia Giannelli & Chiara Monfardini, 2003. "Joint decisions on household membership and human capital accumulation of youths. The role of expected earnings and local markets," Journal of Population Economics, Springer, vol. 16(2), pages 265-285, 05.
- Gianna Claudia Giannelli & Chiara Monfardini, 2001. "JOINT DECISIONS ON HOUSEHOLD MEMBERSHIP AND HUMAN CAPITAL ACCUMULATION OF YOUTHS The role of expected earnings and local markets," CHILD Working Papers wp02_01, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
- Heckman, James, 2013.
"Sample selection bias as a specification error,"
Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Fidrmuc, Jan, 2004.
"Migration and regional adjustment to asymmetric shocks in transition economies,"
Journal of Comparative Economics,
Elsevier, vol. 32(2), pages 230-247, June.
- Fidrmuc, Jan, 2003. "Migration and Regional Adjustment to Asymmetric Shocks in Transition Economies," CEPR Discussion Papers 3798, C.E.P.R. Discussion Papers.
- Jan Fidrmuc, 2002. "Migration and regional adjustment to asymmetric shocks in transition economies," CPB Discussion Paper 7, CPB Netherlands Bureau for Economic Policy Analysis.
- Alan Blinder & Yoram Weiss, 1974.
"Human Capital and Labor Supply: A Synthesis,"
435, Princeton University, Department of Economics, Industrial Relations Section..
- Whitfield, Keith & Wilson, R A, 1991. "Staying on in Full-Time Education: The Education Participation Rate of 16-Year-Olds," Economica, London School of Economics and Political Science, vol. 58(231), pages 391-404, August.
- Anh Ngoc Nguyen & Jim Taylor, 2003. "Post-high school choices: New evidence from a multinomial logit model," Journal of Population Economics, Springer, vol. 16(2), pages 287-306, 05.
- Flinn, Christopher J & Heckman, James J, 1983.
"Are Unemployment and Out of the Labor Force Behaviorally Distinct Labor Force States?,"
Journal of Labor Economics,
University of Chicago Press, vol. 1(1), pages 28-42, January.
- Christopher J. Flinn & James J. Heckman, 1982. "Are Unemployment and Out of the Labor Force Behaviorally Distinct Labor Force States?," NBER Working Papers 0979, National Bureau of Economic Research, Inc.
- John Micklewright, 1999.
"Education, inequality and transition,"
The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 7(2), pages 343-376, July.
- Pissarides, Christopher A, 1981. "Staying-on at School in England and Wales," Economica, London School of Economics and Political Science, vol. 48(192), pages 345-63, November.
- Rice, Patricia G, 1987. "The Demand for Post-compulsory Education in the UK and the Effects of Educational Maintenance Allowances," Economica, London School of Economics and Political Science, vol. 54(216), pages 465-75, November.
- Niall O’Higgins, 2004. "Recent Trends in Youth Labour Markets and Youth Employment Policy in Europe and Central Asia," CELPE Discussion Papers 85, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
- Psacharopoulos, George, 1993.
"Returns to investment in education : a global update,"
Policy Research Working Paper Series
1067, The World Bank.
- Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
- McVicar, Duncan & Rice, Patricia, 2000.
"Participation in further education in England and Wales: an analysis of post-war trends,"
Discussion Paper Series In Economics And Econometrics
0014, Economics Division, School of Social Sciences, University of Southampton.
- McVicar, Duncan & Rice, Patricia, 2001. "Participation in Further Eduction in England and Wales: An Analysis of Post-War Trends," Oxford Economic Papers, Oxford University Press, vol. 53(1), pages 47-66, January.
- Patricia Rice, 1999. "The impact of local labour markets on investment in further education: Evidence from the England and Wales youth cohort studies," Journal of Population Economics, Springer, vol. 12(2), pages 287-312.
- Ferragina, Anna Maria & Pastore, Francesco, 2004. "Factor Endowment and Market Size in EU-CEE Trade: Would Human Capital Change the Actual Quality Trade Patterns?," IZA Discussion Papers 1139, Institute for the Study of Labor (IZA).
- Anna Maria A Ferragina & Francesco Pastore, 2005. "Factor Endowment and Market Size in EU-CEE Trade : Would Human Capital Change Actual Quality Trade Patterns?," Eastern European Economics, M.E. Sharpe, Inc., vol. 43(1), pages 5-33, January.
- Kim B. Clark & Lawrence H. Summers, 1978.
"The Dynamics of Youth Unemployment,"
NBER Working Papers
0274, National Bureau of Economic Research, Inc.
- Micklewright, John & Pearson, Mark & Smith, Stephen, 1990. "Unemployment and Early School Leaving," Economic Journal, Royal Economic Society, vol. 100(400), pages 163-69, Supplemen.
- Poterba, James M & Summers, Lawrence H, 1995. "Unemployment Benefits and Labor Market Transitions: A Multinomial Logit Model with Errors in Classification," The Review of Economics and Statistics, MIT Press, vol. 77(2), pages 207-16, May.
- Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-38, May.
- Caroleo, Floro Ernesto & Pastore, Francesco, 2009.
"Le cause del (l’in-)successo lavorativo dei giovani
[The determinants of youth success in the labour market]," MPRA Paper 14218, University Library of Munich, Germany.
- Floro Ernesto Caroleo & Francesco Pastore, 2009. "Le cause del(l)'(in)successo lavorativo dei giovani," Economia & Lavoro, Fondazione Giacomo Brodolini, issue 3, pages 107.
- Caroleo Floro Ernesto & Pastore Francesco, 2009. "Le cause del(l') (in)successo lavorativo dei giovani," Economia & lavoro, Carocci editore, issue 3, pages 107.
- Groisman, Fernando & Calero, Analía V., 2012.
"Educación y Participación Económica de los Jóvenes en Argentina. Un análisis de sus determinantes (2004-2009)
[Education and Youth Economic Participation in Argentina. An analysis of its deter," MPRA Paper 38281, University Library of Munich, Germany.
- Floro Ernesto Caroleo & Francesco Pastore, 2007. "The Youth Experience Gap: Explaining Differences across EU Countries," Quaderni del Dipartimento di Economia, Finanza e Statistica 41/2007, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
- Emanuela Ghignoni & Alina Verashchagina, 2012. "Educational qualifications mismatch in Europe Is it demand or supply driven?," Working Papers 154, University of Rome La Sapienza, Department of Public Economics.
- Pastore, Francesco, 2007. "Employment and Education Policy for Young People in the EU: What Can New Member States Learn from Old Member States?," IZA Discussion Papers 3209, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.