The Causal Effects of Education on Adaptability
AbstractThis study investigates the causal effects of education on individualsâ€™ 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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Bibliographic InfoPaper provided by UBC Department of Economics in its series CLSRN Working Papers with number clsrn_admin-2009-15.
Length: 46 pages
Date of creation: 16 Feb 2009
Date of revision: 16 Feb 2009
Contact details of provider:
Education; Human Capital; Adaptability; Displaced Workers; Unemployment; Job Search; Casual Effects; Compulsory Schooling Laws;
Find related papers by JEL classification:
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-02-22 (All new papers)
- NEP-EDU-2009-02-22 (Education)
- NEP-HRM-2009-02-22 (Human Capital & Human Resource Management)
- NEP-LAB-2009-02-22 (Labour Economics)
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