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Labour market performance and school careers of low educated graduates

Author

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  • Arjen Edzes

    ()

  • Marije Hamersma
  • Viktor Venhorst
  • Jouke Dijk

Abstract

It is well-known that those with lower levels of education and school drop-outs are less successful in the labour market. The aim of this paper is to shed light on the determinants to continue in education to at least the minimum level defined by the Lisbon Treaty 2000, the so-called starting qualification. We focus especially on the impact of the regional labour market situation and possible spill-over effects due to the presence of higher educated. In addition to that we analyze the differences in successfully finding a job between those who do and those who do not have obtained a starting qualification. We find that regional factors have a significant impact on the decision to (not) continue education and on the chance to get a job. The most striking result we found is that a prosperous regional labor market situation stimulates individuals to accept a job and dropout of school before they reach the level of the start-qualification. They seem to prefer the short term goal of earning money above an investment in schooling of which the benefits will occur in the future. We find evidence for positive spill-overs between higher and lower educated, but no evidence for negative crowding out effects. Nevertheless, personal aspects and school/education satisfaction are found to be at least as relevant in school continuation decisions and labour market outcomes of low educated school-leavers. Copyright The Author(s) 2015

Suggested Citation

  • Arjen Edzes & Marije Hamersma & Viktor Venhorst & Jouke Dijk, 2015. "Labour market performance and school careers of low educated graduates," Letters in Spatial and Resource Sciences, Springer, vol. 8(3), pages 267-289, November.
  • Handle: RePEc:spr:lsprsc:v:8:y:2015:i:3:p:267-289
    DOI: 10.1007/s12076-015-0141-7
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    References listed on IDEAS

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    1. Stephen Machin & Kjell G. Salvanes & Panu Pelkonen, 2012. "Education And Mobility," Journal of the European Economic Association, European Economic Association, vol. 10(2), pages 417-450, April.
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    5. Callan, Tim & Harmon, Colm, 1999. "The economic return to schooling in Ireland," Labour Economics, Elsevier, vol. 6(4), pages 543-550, November.
    6. Viktor Venhorst & Jouke Van Dijk & Leo Van Wissen, 2011. "An Analysis of Trends in Spatial Mobility of Dutch Graduates," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(1), pages 57-82.
    7. Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Social, Employment and Migration Working Papers 35, OECD Publishing.
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    9. Alexandra Spitz-Oener, 2006. "Technical Change, Job Tasks, and Rising Educational Demands: Looking outside the Wage Structure," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 235-270, April.
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    Citations

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    Cited by:

    1. Luca Salvati & Margherita Carlucci & Giuseppe Venanzoni, 2017. "Recession, resilience, local labour markets: wealthier is better?," Letters in Spatial and Resource Sciences, Springer, vol. 10(2), pages 177-204, July.

    More about this item

    Keywords

    Human capital; Low educated; Regional labour market; C35; I20; J21; J31;

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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