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The impact of local labour markets on investment in further education: Evidence from the England and Wales youth cohort studies


  • Patricia Rice

    () (Department of Economics, University of Southampton, Southampton SO17 1BJ, UK)


The paper focuses on the individual's choice of activity on completion of compulsory schooling - to remain in full-time education or to seek employment - and the factors influencing this decision. Information from the England and Wales Youth Cohort Studies, coupled with labour market data, is used to estimate of logit model of choice and assess the role played by social and market factors. The results show that labour market conditions play an influential role in determining outcomes, particularly in the case of young males with weaker academic qualifications. Consistent with the time-series evidence, we find that participation rates in further education for both males and females are positively related to the unemployment rate in the local labour market, the effects being greater at times of economic recession when unemployment rates are rising.

Suggested Citation

  • Patricia Rice, 1999. "The impact of local labour markets on investment in further education: Evidence from the England and Wales youth cohort studies," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(2), pages 287-312.
  • Handle: RePEc:spr:jopoec:v:12:y:1999:i:2:p:287-312
    Note: Received: 5 May 1997/Accepted: 17 July 1998

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    More about this item


    Human capital · further education · local labour markets;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education


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