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The Work-To-School Transitions:Job Displacement and Skill Upgrading among Young High School Dropouts

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  • Patrick Bennett

Abstract

This paper examines how and why returning to education fosters recovery from negative employment shocks among high school dropouts. High school dropout remains a problem, particularly as employment is increasingly skilled over time. Exploiting a policy expanding a Norwegian vocational certification scheme in a triple difference framework, workers displaced post-expansion certify their skills at significantly higher rates relative to those displaced preexpansion. Increases in certification post-expansion significantly reduce income losses after job loss. Certifying skills fosters recovery among early career displaced workers through the retention of relevant industry-specific human capital, which increases job stability over 20 years later

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  • Patrick Bennett, 2022. "The Work-To-School Transitions:Job Displacement and Skill Upgrading among Young High School Dropouts," Working Papers 202205, University of Liverpool, Department of Economics.
    • Handle: RePEc:liv:livedp:202205
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    More about this item

    Keywords

    job displacement; vocational education; unemployment;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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