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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, Oivind Anti () (Department of Economics, Univerity of Bergen)

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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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Publisher 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
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Handle: RePEc:iza:izadps:dp27

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

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Find related papers by JEL classification:
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models
C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis

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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.:
  1. Eckstein, Zvi & Wolpin, Kenneth I, 1995. "Duration to First Job and the Return to Schooling: Estimates from a Search-Matching Model," Review of Economic Studies, Blackwell Publishing, vol. 62(2), pages 263-86, April. [Downloadable!] (restricted)
    Other versions:
  2. Han, Aaron & Hausman, Jerry A, 1990. "Flexible Parametric Estimation of Duration and Competing Risk Models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 5(1), pages 1-28, January-M. [Downloadable!] (restricted)
  3. Omori, Yoshiaki, 1997. "Stigma Effects of Nonemployment," Economic Inquiry, Oxford University Press, vol. 35(2), pages 394-416, April.
  4. Lee, Byung-Joo, 1992. "A nested Tobit analysis for a sequentially censored regression model," Economics Letters, Elsevier, vol. 38(3), pages 269-273, March. [Downloadable!] (restricted)
  5. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-82, July. [Downloadable!] (restricted)
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  6. James J. Heckman & Christopher J. Flinn, 1982. "New Methods for Analyzing Structural Models of Labor Force Dynamics," NBER Working Papers 0856, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Rosella Gardecki & David Neumark, 1997. "Order from Chaos? The Effects of Early Labor Market Experiences on Adult Labor Market Outcomes," NBER Working Papers 5899, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Jensen, Peter & Westergard-Nielsen, Niels C, 1987. "A Search Model Applied to the Transition from Education to Work," Review of Economic Studies, Blackwell Publishing, vol. 54(3), pages 461-72, July. [Downloadable!] (restricted)
  9. Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December. [Downloadable!] (restricted)
  10. Dolton, Peter J & Makepeace, Gerald H, 1987. "Marital Status, Child Rearing and Earnings Differentials in the Graduate Labour Market," Economic Journal, Royal Economic Society, vol. 97(388), pages 897-922, December. [Downloadable!] (restricted)
  11. 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. [Downloadable!] (restricted)
  12. Layard, R. & Nickell, S., . "Layard-Nickell," Instructional Stata datasets for econometrics layardnickell, Boston College Department of Economics. [Downloadable!]
  13. Burdett, Kenneth, 1978. "The testing and sorting functions of higher education," Journal of Public Economics, Elsevier, vol. 10(1), pages 117-122, August. [Downloadable!] (restricted)
  14. 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. [Downloadable!] (restricted)
  15. Rosenthal, Leslie, 1994. "Labour Market Transitions following Redundancy: An Approach with Time-Varying Variables," Applied Economics, Taylor and Francis Journals, vol. 26(4), pages 409-16, April.
  16. 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. [Downloadable!] (restricted)
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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. Steve Bradley & MJ Andrews & D Stott, 2001. "The school-to-work transition, skill preferences and matching," Working Papers 000034, Lancaster University Management School, Economics Department. [Downloadable!]
    Other versions:
  2. Kathrin Bertschy & Alejandra Cattaneo & Stefan C. Wolter, 2008. "What happened to the PISA 2000 participants five years later?," Economics of Education Working Paper Series 0013, University of Zurich, Institute for Strategy and Business Economics (ISU). [Downloadable!]
    Other versions:
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