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Education and Long-Term Unemployment

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  • Garrouste, Christelle
  • Kozovska, Kornelia
  • Arjona Perez, Elena

Abstract

This paper investigates the relationship between education and long-term unemployment when considering regional economic differences and other relevant variables at the individual and at the local level, using data from the 2004-2006 EU-SILC (11 countries). The analysis has been run using both a binary logit model and a binary scobit model. Our results suggest that the probability of an individual to be in long-term unemployment decreases with her educational level. There is a decrease in returns to education after the age of 40, which confirms the assumption of an obsolescence of skills defended in the human capital literature. With regard to the regional settings, younger workers (20-30) and older workers (50-65) tend to benefit more from the dynamics offered by highly competitive regions.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25073.

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Date of creation: 2010
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Handle: RePEc:pra:mprapa:25073

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Keywords: unemployment differentials; education and long-term unemployment; regional competitiveness;

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  1. Evans, Philip & McCormick, Barry, 1994. "The New Pattern of Regional Unemployment: Causes and Policy Significance," Economic Journal, Royal Economic Society, vol. 104(424), pages 633-47, May.
  2. Maia Güell, 2001. "Fixed-Term Contracts and the Duration Distribution of Unemployment," CEP Discussion Papers dp0505, Centre for Economic Performance, LSE.
  3. Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
  4. Burridge, Peter & Gordon, Ian Richard, 1981. "Unemployment in the British Metropolitan Labour Areas," Oxford Economic Papers, Oxford University Press, vol. 33(2), pages 274-97, July.
  5. Anna Amilon & Mårten Wallette, 2009. "Work Absence - A Signalling Factor for Temporary Workers?," LABOUR, CEIS, vol. 23(1), pages 171-194, 03.
  6. Winkelmann, Liliana & Winkelmann, Rainer, 1998. "Why Are the Unemployed So Unhappy? Evidence from Panel Data," Economica, London School of Economics and Political Science, vol. 65(257), pages 1-15, February.
  7. Stephen Machin & Alan Manning, 1998. "The Causes and Consequences of Long-Term Unemployment in Europe," CEP Discussion Papers dp0400, Centre for Economic Performance, LSE.
  8. O'Connell, Philip J. & McGuinness, Seamus & Kelly, Elish, 2010. "A Statistical Profiling Model of Long-Term Unemployment Risk in Ireland," Papers WP345, Economic and Social Research Institute (ESRI).
  9. Heckman, James J & Borjas, George J, 1980. "Does Unemployment Cause Future Unemployment? Definitions, Questions and Answers from a Continuous Time Model of Heterogeneity and State Dependence," Economica, London School of Economics and Political Science, vol. 47(187), pages 247-83, August.
  10. Harry J. Holzer, 1988. "Structural/Frictional and Demand-Deficient Unemployment in Local Labor Markets," NBER Working Papers 2652, National Bureau of Economic Research, Inc.
  11. Simon, Curtis J, 1988. "Frictional Unemployment and the Role of Industrial Diversity," The Quarterly Journal of Economics, MIT Press, vol. 103(4), pages 715-28, November.
  12. Korpi, Tomas, 1997. "Is utility related to employment status? Employment, unemployment, labor market policies and subjective well-being among Swedish youth," Labour Economics, Elsevier, vol. 4(2), pages 125-147, June.
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