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Educational Track, Networks and Labor Market Outcomes

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  • David Margolis

    (Crest)

  • Véronique Simonnet

    (Crest)

Abstract

Does the educational track (technical or professional, as opposed to general) provide individuals with networks that are useful in the labor market? And how do these networks help? In this paper, we consider the effect of the educational track on the means by which individuals find employment, the time it takes to find their first stable job and their earnings once the school-to-work transition is well established. Using data in French school leavers from 1969-1992, we find that the educational track significantly influences the means by which jobs are found, favoring networks in particular, as well as having an independent direct effect on the speed of transition into the labor market and later earnings. We also find that the means by which a job was found significantly affects the time to first job and earnings, and in a way that offsets the direct effect of the educational track on our outcome variables.
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Suggested Citation

  • David Margolis & Véronique Simonnet, 2002. "Educational Track, Networks and Labor Market Outcomes," Working Papers 2002-60, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:2002-60
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    References listed on IDEAS

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    1. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, vol. 81(5), pages 1407-1418, December.
    2. James Heckman, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    3. Donald W. K. Andrews & Moshe Buchinsky, 2000. "A Three-Step Method for Choosing the Number of Bootstrap Repetitions," Econometrica, Econometric Society, vol. 68(1), pages 23-52, January.
    4. Mortensen, D. T. & Vishwanath, T., 1995. "Personal contacts and earnings: It is who you know!," Labour Economics, Elsevier, vol. 2(1), pages 103-104, March.
    5. Véronique Simonnet & Valérie Ulrich, 2000. "La formation professionnelle et l'insertion sur le marché du travail : l'efficacité du contrat d'apprentissage," Économie et Statistique, Programme National Persée, vol. 337(1), pages 81-95.
    6. Rebick, Marcus E, 2000. "The Importance of Networks in the Market for University Graduates in Japan: A Longitudinal Analysis of Hiring Patterns," Oxford Economic Papers, Oxford University Press, vol. 52(3), pages 471-496, July.
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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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