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To Study or to Work? Education and Labour Market Participation of Young People in Poland

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  • Pastore, Francesco

    (Università della Campania Luigi Vanvitelli)

Abstract

This paper proposes Heckprobit estimates of the determinants of labour market participation of a sample of young (15-30) Poles, controlling for the sample selection bias caused by excluding those in education. There is evidence of sample selection bias in the case of young men, suggesting that they obey more than women to economic factors in making their educational choices. Education is an important determinant of the success in the labour market. The instrumental variables used in the selection equation – the local unemployment rate, expected lifetime earnings and the opportunity cost of education – have a statistically significant impact on the probability to be in education. In contrast with several previous studies relative to mature market economies, in high unemployment voivodships young people prefer to seek a job, rather than studying. In turn, this contributes to make regional unemployment persistent.

Suggested Citation

  • Pastore, Francesco, 2005. "To Study or to Work? Education and Labour Market Participation of Young People in Poland," IZA Discussion Papers 1793, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp1793
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    References listed on IDEAS

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    Cited by:

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    2. Aina, Carmen & Baici, Eliana & Casalone, Giorgia & Pastore, Francesco, 2019. "Delayed Graduation and University Dropout: A Review of Theoretical Approaches," IZA Discussion Papers 12601, Institute of Labor Economics (IZA).
    3. Elvana Hana & Arsena Gjipali, 2010. "What Determines Upper Secondary School Participation? - Intergenerational Effects Of Education Outcomes In Albania," Journal Articles, Center For Economic Analyses, pages 17-31, June.
    4. Fabrizio Pompei & Ekaterina Selezneva, 2015. "Education Mismatch, Human Capital and Labour Status of Young People across European Union Countries," Working Papers 347, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    5. Ghignoni, Emanuela & Verashchagina, Alina, 2014. "Educational qualifications mismatch in Europe. Is it demand or supply driven?," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 670-692.
    6. Dunsch, Sophie, 2016. "Does labor force participation rates of youth vary within the business cycle? Evidence from Germany and Poland," Discussion Papers 386, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    7. Floro Ernesto Caroleo & Francesco Pastore, 2007. "The Youth Experience Gap: Explaining Differences across EU Countries," Quaderni del Dipartimento di Economia, Finanza e Statistica 41/2007, Università di Perugia, Dipartimento Economia.
    8. Floro Ernesto Caroleo & Francesco Pastore, 2009. "Le cause del(l') (in)successo lavorativo dei giovani," Economia & lavoro, Carocci editore, issue 3, pages 107-107.
    9. Leonora Risse, 2006. "Does Maternity Leave Encourage Higher birth Rates? An Analysis of the Australian Labour Market," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 9(4), pages 343-370, December.
    10. Bachmann, Ronald & Bechara, Peggy & Cim, Merve & Kramer, Anica, 2018. "Working women and labour market inequality. Research project for the Wilfried Martens Centre for European Studies: Final report - July 2018," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 195939, March.
    11. Avdullah Hoti, 2017. "Participation, Discouraged Workers and Job Search: Evidence for Kosova," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 3(3), pages 239-262, July.
    12. Groisman, Fernando & Calero, Analía V., 2012. "Educación y Participación Económica de los Jóvenes en Argentina. Un análisis de sus determinantes (2004-2009) [Education and Youth Economic Participation in Argentina. An analysis of its determinan," MPRA Paper 38281, University Library of Munich, Germany.

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    More about this item

    Keywords

    youth unemployment; education; heckprobit; Lisbon strategy; Poland;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • I2 - Health, Education, and Welfare - - Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • P3 - Economic Systems - - Socialist Institutions and Their Transitions
    • P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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