To Study or to Work? Education and Labour Market Participation of Young People in Poland
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.
|Date of creation:||Oct 2005|
|Date of revision:|
|Publication status:||published in: Eastern European Economics, 2012, 50 (3), 49-78|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
- Keane, Michael P & Wolpin, Kenneth I, 1997.
"The Career Decisions of Young Men,"
Journal of Political Economy,
University of Chicago Press, vol. 105(3), pages 473-522, June.
- John Micklewright & UNICEF Innocenti Research Centre, 2000.
"Education, Inequality and Transition,"
Innocenti Working Papers
inwopa00/3, UNICEF Innocenti Research Centre.
- Alan Blinder & Yoram Weiss, 1974.
"Human Capital and Labor Supply: A Synthesis,"
435, Princeton University, Department of Economics, Industrial Relations Section..
- Ferragina, Anna Maria & Pastore, Francesco, 2004. "Factor Endowment and Market Size in EU-CEE Trade: Would Human Capital Change the Actual Quality Trade Patterns?," IZA Discussion Papers 1139, Institute for the Study of Labor (IZA).
- Gianna Claudia Giannelli & Chiara Monfardini, 2003.
"Joint decisions on household membership and human capital accumulation of youths. The role of expected earnings and local markets,"
Journal of Population Economics,
Springer, vol. 16(2), pages 265-285, 05.
- Gianna Claudia Giannelli & Chiara Monfardini, 2001. "JOINT DECISIONS ON HOUSEHOLD MEMBERSHIP AND HUMAN CAPITAL ACCUMULATION OF YOUTHS The role of expected earnings and local markets," CHILD Working Papers wp02_01, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
- Giannelli, Gianna Claudia & Monfardini, Chiara, 2000. "Joint Decisions on Household Membership and Human Capital Accumulation of Youths - The role of expected earnings and local markets," IZA Discussion Papers 191, Institute for the Study of Labor (IZA).
- Rice, Patricia G, 1987. "The Demand for Post-compulsory Education in the UK and the Effects of Educational Maintenance Allowances," Economica, London School of Economics and Political Science, vol. 54(216), pages 465-75, November.
- Heckman, James J, 1976. "A Life-Cycle Model of Earnings, Learning, and Consumption," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages S11-44, August.
- Patricia Rice, 1999. "The impact of local labour markets on investment in further education: Evidence from the England and Wales youth cohort studies," Journal of Population Economics, Springer, vol. 12(2), pages 287-312.
- Ferragina, Anna Maria & Pastore, Francesco, 2005.
"Mind the Gap: Unemployment in the New EU Regions,"
IZA Discussion Papers
1565, Institute for the Study of Labor (IZA).
- Psacharopoulos, George, 1993.
"Returns to investment in education : a global update,"
Policy Research Working Paper Series
1067, The World Bank.
- Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
- Kevin Denny & Colm Harmon, 2000.
"The impacts of education and training on the labour market experiences of young adults,"
IFS Working Papers
W00/08, Institute for Fiscal Studies.
- Denny, K.J. & Harmon, C.P., 2000. "The Impact of Education and Training on the Labour Market Experiences of Yound Adults," Papers 00/1, College Dublin, Department of Political Economy-.
- Jan Fidrmuc, 2002.
"Migration and regional adjustment to asymmetric shocks in transition economies,"
CPB Discussion Paper
7, CPB Netherlands Bureau for Economic Policy Analysis.
- Fidrmuc, Jan, 2004. "Migration and regional adjustment to asymmetric shocks in transition economies," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 230-247, June.
- Fidrmuc, Jan, 2003. "Migration and Regional Adjustment to Asymmetric Shocks in Transition Economies," CEPR Discussion Papers 3798, C.E.P.R. Discussion Papers.
- Davia, Maria A., 2004. "Tackling multiple choices: a joint determination of transitions out of education and into the labour market across the European Union," ISER Working Paper Series 2004-22, Institute for Social and Economic Research.
- Beleva, Iskra, 2001. "Targeting Youth Employment Policy in Bulgaria," MPRA Paper 60272, University Library of Munich, Germany.
- Anna Maria A Ferragina & Francesco Pastore, 2005. "Factor Endowment and Market Size in EU-CEE Trade : Would Human Capital Change Actual Quality Trade Patterns?," Eastern European Economics, M.E. Sharpe, Inc., vol. 43(1), pages 5-33, January.
- Poterba, James M & Summers, Lawrence H, 1995. "Unemployment Benefits and Labor Market Transitions: A Multinomial Logit Model with Errors in Classification," The Review of Economics and Statistics, MIT Press, vol. 77(2), pages 207-16, May.
- Whitfield, Keith & Wilson, R A, 1991. "Staying on in Full-Time Education: The Education Participation Rate of 16-Year-Olds," Economica, London School of Economics and Political Science, vol. 58(231), pages 391-404, August.
- Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-38, May.
- Christopher J. Flinn & James J. Heckman, 1982.
"Are Unemployment and Out of the Labor Force Behaviorally Distinct Labor Force States?,"
NBER Working Papers
0979, National Bureau of Economic Research, Inc.
- Flinn, Christopher J & Heckman, James J, 1983. "Are Unemployment and Out of the Labor Force Behaviorally Distinct Labor Force States?," Journal of Labor Economics, University of Chicago Press, vol. 1(1), pages 28-42, January.
- Arulampalam, Wiji & Stewart, Mark B, 1995. "The Determinants of Individual Unemployment Durations in an Era of High Unemployment," Economic Journal, Royal Economic Society, vol. 105(429), pages 321-32, March.
- Niall O’Higgins, 2004. "Recent Trends in Youth Labour Markets and Youth Employment Policy in Europe and Central Asia," CELPE Discussion Papers 85, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
- Kim B. Clark & Lawrence H. Summers, 1982.
"The Dynamics of Youth Unemployment,"
in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 199-234
National Bureau of Economic Research, Inc.
- McVicar, Duncan & Rice, Patricia, 2000.
"Participation in further education in England and Wales: an analysis of post-war trends,"
Discussion Paper Series In Economics And Econometrics
0014, Economics Division, School of Social Sciences, University of Southampton.
- McVicar, Duncan & Rice, Patricia, 2001. "Participation in Further Eduction in England and Wales: An Analysis of Post-War Trends," Oxford Economic Papers, Oxford University Press, vol. 53(1), pages 47-66, January.
- Anh Ngoc Nguyen & Jim Taylor, 2003. "Post-high school choices: New evidence from a multinomial logit model," Journal of Population Economics, Springer, vol. 16(2), pages 287-306, 05.
- Micklewright, John & Pearson, Mark & Smith, Stephen, 1990. "Unemployment and Early School Leaving," Economic Journal, Royal Economic Society, vol. 100(400), pages 163-69, Supplemen.
- Pissarides, Christopher A, 1981. "Staying-on at School in England and Wales," Economica, London School of Economics and Political Science, vol. 48(192), pages 345-63, November.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp1793. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.