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Youth unemployment and labour market transitions in Hungary

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  • Rick Audas
  • Eva Berde
  • Peter Dolton

Abstract

Unemployment and labour market adjustment have featured prominently in the problems of transitional economies. However, the position of young people and their transitions from school to work in these new market economies has been virtually ignored. This paper examines a new large longitudinal data set relating to young people in Hungary over the period 1994-98. Using data on each individual's labour market state over 4 years we estimate a panel econometric model that explicitly allows for duration dependence and individual unobserved heterogeneity to capture the diversity of initial conditions faced by these young people in the labour market. In modelling the education and employment decisions in the transition from school to work we find strong evidence of the importance of individuals making good initial career decisions and an enduring effect of academic achievement on labour market and education outcomes.

Suggested Citation

  • Rick Audas & Eva Berde & Peter Dolton, 2005. "Youth unemployment and labour market transitions in Hungary," Education Economics, Taylor & Francis Journals, vol. 13(1), pages 1-25.
    • Handle: RePEc:taf:edecon:v:13:y:2005:i:1:p:1-25
    DOI: 10.1080/0964529042000325180
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    References listed on IDEAS

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    1. Gyula Nagy & John Micklewright, 1998. "Unemployment assistance in Hungary," Empirical Economics, Springer, vol. 23(1/2), pages 155-175.
    2. Andrew Newell & Barry Reilly, 1999. "Rates of Return to Educational Qualifications in the Transitional Economies," Education Economics, Taylor & Francis Journals, vol. 7(1), pages 67-84.
    3. Christopher J. O'Leary & Piotr Kolodziejczyk & Gyorgy Lazar, "undated". "The Net Impact of Active Labour Market Programmes in Hungary and Poland," Upjohn Working Papers cjo19983, W.E. Upjohn Institute for Employment Research.
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    5. Blanchflower, David G. & Oswald, Andrew J., 1997. "A Study Of Labour Markets And Youth Unemployment In Eastern Europe," Economic Research Papers 268781, University of Warwick - Department of Economics.
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    8. John Micklewright, 1999. "Education, inequality and transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(2), pages 343-376, July.
    9. Micklewright, John & Nagy, Gyula, 1999. "Living standards and incentives in transition: the implications of UI exhaustion in Hungary," Journal of Public Economics, Elsevier, vol. 73(3), pages 297-319, September.
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    Cited by:

    1. Zimmermann, Klaus F. & Biavaschi, Costanza & Eichhorst, Werner & Giulietti, Corrado & Kendzia, Michael J. & Muravyev, Alexander & Pieters, Janneke & Rodríguez-Planas, Núria & Schmidl, Ricarda, 2013. "Youth Unemployment and Vocational Training," Foundations and Trends(R) in Microeconomics, now publishers, vol. 9(1–2), pages 1-157, December.
    2. Fares, Jean & Tiongson, Erwin R., 2007. "Youth unemployment, labor market transitions, and scarring : evidence from Bosnia and Herzegovina, 2001-04," Policy Research Working Paper Series 4183, The World Bank.
    3. Annette Felgenhauer & Katharina Kaufmann & Julia Klier & Mathias Klier, 2021. "In the same boat: social support in online peer groups for career counseling," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(1), pages 197-213, March.
    4. Ali Fakih & Nathir Haimoun & Mohamad Kassem, 2020. "Youth Unemployment, Gender and Institutions During Transition: Evidence from the Arab Spring," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(1), pages 311-336, July.
    5. Riphahn, Regina T. & Zibrowius, Michael, 2015. "Apprenticeship, Vocational Training and Early Labor Market Outcomes in East and West Germany," IZA Discussion Papers 8901, Institute of Labor Economics (IZA).
    6. Regina T. Riphahn & Michael Zibrowius, 2013. "Apprenticeship Training and Early Labor Market Outcomes in East and West Germany," Working Papers 136, Bavarian Graduate Program in Economics (BGPE).
    7. Kelly, Elish & McGuinness, Seamus & O'Connell, Philip J., 2011. "Transitions to Long-Term Unemployment Risk Among Young People: Evidence from Ireland," Papers WP394, Economic and Social Research Institute (ESRI).
    8. Kelly, Elish & McGuinness, Seamus, 2015. "Impact of the Great Recession on unemployed and NEET individuals’ labour market transitions in Ireland," Economic Systems, Elsevier, vol. 39(1), pages 59-71.

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