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Educational Track, Networks and Labor Market Outcomes

Author

Listed:
  • David Margolis

    (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique, IZA - Institute for the Study of Labor, TEAM - Théories et Applications en Microéconomie et Macroéconomie - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Véronique Simonnet

    (TEAM - Théories et Applications en Microéconomie et Macroéconomie - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

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.

Suggested Citation

  • David Margolis & Véronique Simonnet, 2003. "Educational Track, Networks and Labor Market Outcomes," Post-Print halshs-00365833, HAL.
    • Handle: RePEc:hal:journl:halshs-00365833
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    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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