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The Causal Effects of Education on Adaptability

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Author Info

  • Riddell, W. Craig
  • Song, Xueda

Abstract

This study investigates the causal effects of education on individuals’ adaptability to employment shocks. Specifically, we assess the extent to which education influences re-employment success for unemployed workers. We also examine the impact of education on job search intensity, one potential mechanism through which education may increase the probability of re-employment following unemployment. Given that the positive correlation between education and adaptability is likely to be confounded by the endogeneity of education, we make use of data on compulsory schooling laws to create instrumental variables to assess the causal effects of education on adaptability. Based on data from the Canadian Census and the Labour Force Survey, we find that education both significantly improves re-employment opportunities and exerts significant positive impacts on job search intensity for the unemployed.

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File URL: http://www.clsrn.econ.ubc.ca/workingpapers/CLSRN%20Working%20Paper%20no.%208%20-%20Riddell%20&%20Song.pdf
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Bibliographic Info

Paper provided by UBC Department of Economics in its series CLSRN Working Papers with number clsrn_admin-2009-15.

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Length: 46 pages
Date of creation: 16 Feb 2009
Date of revision: 16 Feb 2009
Handle: RePEc:ubc:clssrn:clsrn_admin-2009-15

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Related research

Keywords: Education; Human Capital; Adaptability; Displaced Workers; Unemployment; Job Search; Casual Effects; Compulsory Schooling Laws;

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Cited by:
  1. Philip Oreopoulos & Kjell G. Salvanes, 2009. "How large are returns to schooling? Hint: Money isn't everything," NBER Working Papers 15339, National Bureau of Economic Research, Inc.

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