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School To Work Transitions And The Impact Of Public Expenditure On Education

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Author Info
Blázquez, Maite () (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.)
García, José Ignacio (Universidad Pablo Olavide, FCEA & FEDEA)

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Abstract

In this paper we analyse how the decentralization process of the Spanish educational system has affected the school-to-work transition of youths over the last years. Using individual data from the Spanish Labor Force Survey for the period 1993-2002, we estimate a simultaneous equation model for the unemployment and employment hazard rates of these workers. We include public expenditure on education, at the regional level, as an explanatory factor in both hazards. Furthermore we account for cross-regional differences regarding the decision-making authority over education. Our results reveal that for both, university and non-university levels, public expenditure on education significantly improves the chances of Spanish youths in finding the first job after completing the educational system. However, it seems that the decentralization of university education has negative effects on youths’ labor market prospects in terms of exiting from unemployment, while no effects are observed for the case of non-university education.

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Publisher Info
Paper provided by Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History) in its series Working Papers in Economic Theory with number 2007/08.

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Length: 33 pages
Date of creation: May 2007
Date of revision:
Handle: RePEc:uam:wpaper:200708

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Web page: http://www.uam.es/departamentos/economicas/analecon/default.html
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Related research
Keywords: educational expenditure; decentralization; unemployment hazard; employment hazard;

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Find related papers by JEL classification:
I20 - Health, Education, and Welfare - - Education - - - General
I22 - Health, Education, and Welfare - - Education - - - Educational Finance
I28 - Health, Education, and Welfare - - Education - - - Government Policy

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  1. Paul Ryan, 2001. "The School-to-Work Transition: A Cross-National Perspective," Journal of Economic Literature, American Economic Association, vol. 39(1), pages 34-92, March. [Downloadable!] (restricted)
  2. Jenkins, Stephen P, 1995. "Easy Estimation Methods for Discrete-Time Duration Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 129-38, February.
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