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Youth unemployment and the effect of personality traits

Author

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  • Silvia Mendolia
  • Ian Walker

Abstract

This paper investigates the relationship between personality traits in adolescence and education and labour market choices. In particular, we investigate the impact of locus of control, effort and diligence, and self-esteem, on the risk of youths being unemployed (sometimes referred to as NEET ("Not in Education, Employment or Training"). Thus, our focus is on early drop-out from both education and the labour market at age 18-20. We use matching methods to control for a rich set of adolescent and family characteristics by estimating the treatment effects of multiple personality traits at the same time (Woolridge, 2010). Finally, we use the methodology proposed by Altonji et al. (2005) that involves making hypotheses about the correlation between the unobservables and observables that determine the outcomes and the unobservables that influence personality. Our results show that individuals that display low effort and diligence, low self-esteem, and external locus of control are more likely to drop out of education and employment.

Suggested Citation

  • Silvia Mendolia & Ian Walker, 2015. "Youth unemployment and the effect of personality traits," Working Papers 84097960, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:84097960
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    File URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/LancasterWP2015_012.pdf
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    References listed on IDEAS

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    Cited by:

    1. Gorman, Emma & Harmon, Colm & Mendolia, Silvia & Staneva, Anita & Walker, Ian, 2019. "The Causal Effects of Adolescent School Bullying Victimisation on Later Life Outcomes," Working Papers 2019-05, University of Sydney, School of Economics.
    2. Szabó-Morvai, Ágnes & Kiss, Hubert János & Károlyi, Róbert, 2023. "Kontrollhely Magyarországon - egy reprezentatív felmérés eredményei [Locus of Control in Hungary: The results of a representative survey]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 847-871.
    3. Sek-yum Ngai, Steven & Cheung, Chau-Kiu & Mo, Jianhong & Wang, Lin & Ng, Yuen-hang & Wang, Pinqiao, 2023. "Career interventions and social well-being among non-engaged youth: Examining the mediating effects of career competency," Children and Youth Services Review, Elsevier, vol. 148(C).
    4. Emma Gorman & Colm Harmon & Silvia Mendolia & Anita Staneva & Ian Walker, 2021. "Adolescent School Bullying Victimization and Later Life Outcomes," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(4), pages 1048-1076, August.
    5. Alfredo Alvarado & Belén Conde & Rafael Novella & Andrea Repetto, 2020. "NEETs in Latin America and the Caribbean: Skills, Aspirations, and Information," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(8), pages 1273-1307, November.
    6. Sanders, Jackie & Munford, Robyn & Boden, Joe & Johnston, William, 2020. "Earning, learning, and access to support: The role of early engagement in work, employment skills development and supportive relationships in employment outcomes for vulnerable youth in New Zealand," Children and Youth Services Review, Elsevier, vol. 110(C).
    7. Ondřej Dvouletý & Martin Lukeš & Mihaela Vancea, 2020. "Individual-level and family background determinants of young adults’ unemployment in Europe," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(2), pages 389-409, May.
    8. Juliane Hennecke, 2024. "The independent woman—locus of control and female labor force participation," Review of Economics of the Household, Springer, vol. 22(1), pages 329-357, March.
    9. Heller-Sahlgren, Gabriel, 2023. "Lifelong learning and employment outcomes: evidence from Sweden," LSE Research Online Documents on Economics 115171, London School of Economics and Political Science, LSE Library.
    10. Daniel Gladwell & Gurleen Popli & Aki Tsuchiya, 2022. "Predictors of becoming not in education, employment or training: A dynamic comparison of the direct and indirect determinants," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 185(S2), pages 485-514, December.

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    More about this item

    Keywords

    personality; youth unemployment; NEET; effot; locus of control; self-esteem;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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