IDEAS home Printed from
   My bibliography  Save this paper

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


  • Pastore, Francesco

    () (Università della Campania Luigi Vanvitelli)


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 for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp1793

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. 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.
    2. John Micklewright, 1999. "Education, inequality and transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(2), pages 343-376, July.
    3. Kevin Denny & Colm Harmon, 2000. "The impacts of education and training on the labour market experiences of young adults," Open Access publications 10197/731, School of Economics, University College Dublin.
    4. Anna Maria Ferragina & Francesco Pastore, 2008. "Mind The Gap: Unemployment In The New Eu Regions," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 73-113, February.
    5. Kim B. Clark & Lawrence H. Summers, 1982. "The Dynamics of Youth Unemployment," NBER Chapters,in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 199-234 National Bureau of Economic Research, Inc.
    6. 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).
    7. 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;European Society for Population Economics, vol. 16(2), pages 265-285, May.
    8. Beleva, Iskra, 2001. "Targeting Youth Employment Policy in Bulgaria," MPRA Paper 60272, University Library of Munich, Germany.
    9. 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.
    10. Blinder, Alan S & Weiss, Yoram, 1976. "Human Capital and Labor Supply: A Synthesis," Journal of Political Economy, University of Chicago Press, vol. 84(3), pages 449-472, June.
    11. Micklewright, John & Pearson, Mark & Smith, Stephen, 1990. "Unemployment and Early School Leaving," Economic Journal, Royal Economic Society, vol. 100(400), pages 163-169, Supplemen.
    12. O'Higgins, Niall, 2015. "Youth Unemployment," IZA Policy Papers 103, Institute for the Study of Labor (IZA).
    13. 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.
    14. 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 465-475, November.
    15. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
    16. 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.
    17. 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.
    18. 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, Taylor & Francis Journals, vol. 43(1), pages 5-33, January.
    19. 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.
    20. 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;European Society for Population Economics, vol. 12(2), pages 287-312.
    21. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    22. 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 11-44, August.
    23. Pissarides, Christopher A, 1981. "Staying-on at School in England and Wales," Economica, London School of Economics and Political Science, vol. 48(192), pages 345-363, November.
    24. 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.
    25. 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 321-332, March.
    26. 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.
    27. 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 207-216, May.
    28. 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 334-338, May.
    29. Anh Ngoc Nguyen & Jim Taylor, 2003. "Post-high school choices: New evidence from a multinomial logit model," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(2), pages 287-306, May.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. 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).
    2. 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.
    3. 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.
    4. Caroleo Floro Ernesto & Pastore Francesco, 2009. "Le cause del(l') (in)successo lavorativo dei giovani," Economia & lavoro, Carocci editore, issue 3, pages 107-107.
    5. Pastore, Francesco, 2007. "Employment and Education Policy for Young People in the EU: What Can New Member States Learn from Old Member States?," IZA Discussion Papers 3209, Institute for the Study of Labor (IZA).
    6. 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.
    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. 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.

    More about this item


    youth unemployment; education; heckprobit; Lisbon strategy; Poland;

    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

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.