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YTS, Employment, and Sample Selection Bias

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  • O'Higgins, Niall

Abstract

In this paper, data from the first Youth Cohort Study (YCS) are used to analyze the effectiveness of the Youth Training Scheme (YTS) in England and Wales in terms of its impact, at an individual level, on the employment prospects of young people. The analysis goes beyond previous work in that it explicitly deals with sample selection bias and heteroscedasticity. A switching bivariate probit model is estimated and is found to be preferred to both the univariate probit model and the bivariate probit model with a YTS participation dummy. The analysis suggests that previous studies of YTS may have underestimated both the size and variability of the effect that the scheme had on participants' chances of finding employment. Copyright 1994 by Royal Economic Society.

Suggested Citation

  • O'Higgins, Niall, 1994. "YTS, Employment, and Sample Selection Bias," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 605-628, October.
  • Handle: RePEc:oup:oxecpp:v:46:y:1994:i:4:p:605-28
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    1. Hugh R. Waters & Laurel E. Hatt & Robert E. Black, 2008. "The role of private providers in treating child diarrhoea in Latin America," Health Economics, John Wiley & Sons, Ltd., vol. 17(1), pages 21-29.
    2. Anh T. Le & Paul W. Miller, 2003. "Choice of School in Australia: Determinants and Consequences," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 36(1), pages 55-78.
    3. Mika Haapanen, 2001. "Labour market performance and determinants of migration by gender and region of origin," ERSA conference papers ersa01p130, European Regional Science Association.
    4. Jeffery Gunther & Linda Hooks & Kenneth Robinson, 2000. "Adverse Selection and Competing Deposit Insurance Systems in Pre-Depression Texas," Journal of Financial Services Research, Springer;Western Finance Association, vol. 17(3), pages 237-258, September.
    5. 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.
    6. Sergio de Nardis & Massimo Mancini & Carmine Pappalardo, 2003. "Regolazione del mercato del lavoro e crescita dimensionale delle imprese: Una verifica sull'effetto soglia dei 15 dipendenti," ISAE Working Papers 38, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    7. Richardson, James, 1998. "Do wage subsidies enhance employability? Evidence from Australian youth," LSE Research Online Documents on Economics 20280, London School of Economics and Political Science, LSE Library.
    8. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
    9. Lyssenko, Nikita & Martinez-Espineira, Roberto, 2009. "`Been there done that': Disentangling option value effects from user heterogeneity when valuing natural resources with a use component," MPRA Paper 21976, University Library of Munich, Germany, revised 08 Apr 2010.
    10. J Richardson, 1998. "Do wage subsidies Enhance Employability? Evidence from Australian Youth," CEP Discussion Papers dp0387, Centre for Economic Performance, LSE.
    11. Cappellari, Lorenzo, 2002. " Do the 'Working Poor' Stay Poor? An Analysis of Low Pay Transitions in Italy," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(2), pages 87-110, May.
    12. Lechner, Michael, 1995. "Effects of continuous off-the-job training in East Germany after unification," ZEW Discussion Papers 95-27, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    13. Barone, Adriana & O'Higgins, Niall, 2010. "Fat and out in Salerno and its province: Adolescent obesity and early school leaving in Southern Italy," Economics & Human Biology, Elsevier, vol. 8(1), pages 44-57, March.
    14. Lorenzo Cappellari & Gilberto Turati, 2004. "Volunteer Labour Supply: the role of workers' motivations," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 75(4), pages 619-643, December.
    15. Rodríguez Hernández, José E. & Barrios García, Javier A., 2012. "¿Incide la forma de tenencia de la vivienda habitual sobre la situación de empleo en España?/Does the Housing Tenure Choice Affect the Employment Situation in Spain?," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 30, pages 751(22)-751, Agosto.
    16. Stephen T. Parente & Roger Feldman, 2008. "Do HSA Choices Interact with Retirement Savings Decisions?," NBER Chapters,in: Tax Policy and the Economy, Volume 22, pages 81-108 National Bureau of Economic Research, Inc.
    17. Denny, Kevin & Harmon, Colm & O'Connell, Philip J., 2000. "Investing in People: The Labour Market Impact of Human Resource Interventions Funded under the 1994-1999 Community Support Framework in Ireland," Research Series, Economic and Social Research Institute (ESRI), number PRS38.
    18. O'Higgins, Niall, 2001. "Youth unemployment and employment policy: a global perspective," MPRA Paper 23698, University Library of Munich, Germany.
    19. Michael White and Genevieve Knight, 2003. "Benchmarking the effectiveness of NDYP: A review of European and US literature on the microeconomic effects of labour market programmes for young people," PSI Research Discussion Series 10, Policy Studies Institute, UK.
    20. Colin Wren, 2002. "Evaluating the effect of soft business support upon small firm performance," Oxford Economic Papers, Oxford University Press, vol. 54(2), pages 334-365, April.
    21. Laura Pagani & Anna Marenzi, 2008. "The Labor Market Participation of Sandwich Generation Italian Women," Journal of Family and Economic Issues, Springer, vol. 29(3), pages 427-444, September.
    22. Fabrizia Mealli & Stephen Pudney, "undated". "Applying Heterogeneous Transition Models in Labour Economics: The Role of Youth Training in labour Market transitions," Discussion Papers in Public Sector Economics 99/5, Department of Economics, University of Leicester.
    23. Jari RitsilAa & Mika Haapanen, 2003. "Where do the highly educated migrate? Micro-level evidence from finland," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(4), pages 437-448.
    24. Annamaria Nese & Niall O’Higgins, 2007. "Attrition bias in the Capitalia panel," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 54(3), pages 383-403, September.

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