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The impacts of education and training on the labour market experiences of young adults

  • Kevin Denny

    (Institute for Fiscal Studies and University College Dublin)

  • Colm Harmon

This paper uses pooled cross-section data on recent school leavers in Ireland to model the determinants of labour market status and wages for young adults. Firstly we use a multinomial logit model to analyze whether individuals exit school to employment, unemployment or higher education. Family background is an important predictor for participation in higher education reflecting the degree of rationing in the system. The level of educational attainment influences the probability of entering higher education or employment. The estimates for earnings functions show large differences across gender with males being rewarded significantly higher. The returns to training are positive though biased upwards by sample selection particularly for females.

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File URL: http://www.ifs.org.uk/wps/wp0008.pdf
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Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W00/08.

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Length: 18 pp
Date of creation: Apr 2000
Date of revision:
Handle: RePEc:ifs:ifsewp:00/08
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  1. Kevin Denny & Colm Harmon, 2001. "Testing for sheepskin effects in earnings equations: evidence for five countries," Applied Economics Letters, Taylor & Francis Journals, vol. 8(9), pages 635-637.
  2. Callan, Tim & Harmon, Colm, 1999. "The economic return to schooling in Ireland," Labour Economics, Elsevier, vol. 6(4), pages 543-550, November.
  3. Andrews, Martyn & Bradley, Steve, 1997. "Modelling the Transition from School and the Demand for Training in the United Kingdom," Economica, London School of Economics and Political Science, vol. 64(255), pages 387-413, August.
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