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Transition from School to Work: Search Time and Job Duration

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Author Info

  • Bratberg, Espen

    ()
    (University of Bergen)

  • Nilsen, Øivind Anti

    ()
    (Norwegian School of Economics)

Abstract

We consider the early labour market experience of young persons. Using a large data sample of Norwegian individuals finishing education in 1989-91, we analyze the transition from school to work and the duration of the first job. We allow the search duration, the accepted wage, and the job duration to be connected in a system of simultaneous equations which is estimated by maximum likelihood. The empirical evidence suggests that individuals with higher levels of schooling get jobs more quickly, and also have longer durations of their first jobs. Apprentices have shorter search periods and stay in their jobs longer than other individuals at the same educational level. Females appear to have lower reservation wages when entering the labour market (shorter search time and lower wages). They also stay in the first job longer than males do. The search duration and the accepted wage affect job duration positively, but the estimated covariance terms suggest unobserved factors working in the opposite direction.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 27.

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Length: 29 pages
Date of creation: Dec 1998
Date of revision:
Publication status: published as 'Transitions from School to Work and the Early Labour Market Experience' in: Oxford Bulletin of Economics and Statistics, 2000, 62 (special issue), 2000, 909-29;
Handle: RePEc:iza:izadps:dp27

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Keywords: school-to-work transition; job duration; search time; wages;

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References

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  1. Lynch, Lisa M, 1989. "The Youth Labor Market in the Eighties: Determinants of Re-employment Probabilities for Young Men and Women," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 37-45, February.
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  3. Belzil, Christian, 1995. "Unemployment Insurance and Unemployment over Time: An Analysis with Event History Data," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 113-26, February.
  4. Eckstein, Z. & Wolpin, K.I., 1992. "Duration to First Job and the Return to Schooling : Estimates form a Search -Matching Model," Papers 13-92, Tel Aviv.
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  13. Parsons, Donald O, 1991. "The Job Search Behavior of Employed Youth," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 597-604, November.
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  15. Lawrence M. Kahn & Stuart A. Low, 1984. "An Empirical Model of Employed Search, Unemployed Search, and Nonsearch," Journal of Human Resources, University of Wisconsin Press, vol. 19(1), pages 104-117.
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Cited by:
  1. Bertschy, Kathrin & Cattaneo, Maria Alejandra & Wolter, Stefan C., 2008. "What Happened to the PISA 2000 Participants Five Years Later?," IZA Discussion Papers 3323, Institute for the Study of Labor (IZA).
  2. Cooke, L. P., 2003. "A comparison of initial and early life course earnings of the German secondary education and training system," Economics of Education Review, Elsevier, vol. 22(1), pages 79-88, February.

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