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School to work transitions and the impact of public expenditure on education

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Abstract

In this paper we analyse how the decentralization process of the Spanish educational system has affected the school-to-work transition of youths over the last years. Using individual data from the Spanish Labor Force Survey for the period 1993-2002, we estimate a simultaneous equation model for the unemployment and employment hazard rates of these workers. We include public expenditure on education, at the regional level, as an explanatory factor in both hazards. Furthermore we account for cross-regional differences regarding the decision-making authority over education. Our results reveal that for both, university and non-university levels, public expenditure on education significantly improves the chances of Spanish youths in finding the first job after completing the educational system. Furthermore, it seems that the decentralization of university education has positive effects on youths’ labor market prospects in terms of exiting from unemployment. However, we find that such decentralization has no effects over the likelihood of loosing the first job. Finally, we find that public expenditure on non-university education reduces the individual likelihood of leaving the first job especially in those regions without competences in education.

Suggested Citation

  • Maite Blázquez Cuesta & J. Ignacio García Pérez, 2007. "School to work transitions and the impact of public expenditure on education," Economic Working Papers at Centro de Estudios Andaluces E2007/10, Centro de Estudios Andaluces.
  • Handle: RePEc:cea:doctra:e2007_10
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    References listed on IDEAS

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    1. Jenkins, Stephen P, 1995. "Easy Estimation Methods for Discrete-Time Duration Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 129-138, February.
    2. Richard R. Verdugo & Naomi Turner Verdugo, 1989. "The Impact of Surplus Schooling on Earnings: Some Additional Findings," Journal of Human Resources, University of Wisconsin Press, vol. 24(4), pages 629-643.
    3. 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.
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    Cited by:

    1. Lopez-Mayan, Cristina & Nicodemo, Catia, 2012. "Vocational High School or Vocational College? Comparing the Transitions from School to Work," IZA Discussion Papers 6309, Institute for the Study of Labor (IZA).
    2. Dario Sciulli & Marcello Signorelli, 2010. "University-to-work transitions: the case of Perugia," Quaderni del Dipartimento di Economia, Finanza e Statistica 77/2010, Università di Perugia, Dipartimento Economia.

    More about this item

    Keywords

    educational expenditure; decentralization; unemployment hazard; emplyment hazard; gasto educativo; descentralización; tasa de salida del desempleo; tasa de despido.;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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