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To Study or to Work? Education and Labour Market Participation of Young People in Poland

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Author Info
Francesco Pastore () (Seconda Università di Napoli and IZA Bonn)

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Abstract

This 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.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1793.

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Length: 33 pages
Date of creation: Oct 2005
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Handle: RePEc:iza:izadps:dp1793

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Related research
Keywords: youth unemployment; education; heckprobit; Lisbon strategy; Poland;

Other versions of this item:

Find related papers by JEL classification:
C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models
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

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References listed on IDEAS
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.:
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    Other versions:
  5. 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). [Downloadable!]
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    Other versions:
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Full references

Cited by:
(explanations, 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.)

  1. Francesco Pastore, 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). [Downloadable!]
  2. 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. [Downloadable!]
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