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Transition from School to Work: Search Time and Job Duration

  • Bratberg, Espen

    ()

    (University of Bergen)

  • Nilsen, Øivind Anti

    ()

    (Norwegian School of Economics)

We consider the early labour market experience of young persons. Using a large data sample of Norwegian individuals finishing education in 1989-91, we analyze the transition from school to work and the duration of the first job. We allow the search duration, the accepted wage, and the job duration to be connected in a system of simultaneous equations which is estimated by maximum likelihood. The empirical evidence suggests that individuals with higher levels of schooling get jobs more quickly, and also have longer durations of their first jobs. Apprentices have shorter search periods and stay in their jobs longer than other individuals at the same educational level. Females appear to have lower reservation wages when entering the labour market (shorter search time and lower wages). They also stay in the first job longer than males do. The search duration and the accepted wage affect job duration positively, but the estimated covariance terms suggest unobserved factors working in the opposite direction.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 27.

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Length: 29 pages
Date of creation: Dec 1998
Date of revision:
Publication status: published as 'Transitions from School to Work and the Early Labour Market Experience' in: Oxford Bulletin of Economics and Statistics, 2000, 62 (special issue), 2000, 909-29;
Handle: RePEc:iza:izadps:dp27
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  1. Jensen, Peter & Westergard-Nielsen, Niels C, 1987. "A Search Model Applied to the Transition from Education to Work," Review of Economic Studies, Wiley Blackwell, vol. 54(3), pages 461-72, July.
  2. Dolton, Peter J & Makepeace, Gerald H, 1987. "Marital Status, Child Rearing and Earnings Differentials in the Graduate Labour Market," Economic Journal, Royal Economic Society, vol. 97(388), pages 897-922, December.
  3. Rosella Gardecki & David Neumark, 1998. "Order from chaos? The effects of early labor market experiences on adult labor market outcomes," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(2), pages 299-322, January.
  4. Eckstein, Zvi & Wolpin, Kenneth I, 1995. "Duration to First Job and the Return to Schooling: Estimates from a Search-Matching Model," Review of Economic Studies, Wiley Blackwell, vol. 62(2), pages 263-86, April.
  5. Kiefer,Nicholas M. & Neumann,George R., 1989. "Search Models and Applied Labor Economics," Cambridge Books, Cambridge University Press, number 9780521360531.
  6. Lee, Byung-Joo, 1992. "A nested Tobit analysis for a sequentially censored regression model," Economics Letters, Elsevier, vol. 38(3), pages 269-273, March.
  7. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-82, July.
  8. Burdett, Kenneth, 1978. "The testing and sorting functions of higher education," Journal of Public Economics, Elsevier, vol. 10(1), pages 117-122, August.
  9. Belzil, Christian, 1995. "Unemployment Insurance and Unemployment over Time: An Analysis with Event History Data," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 113-26, February.
  10. Lynch, Lisa M, 1989. "The Youth Labor Market in the Eighties: Determinants of Re-employment Probabilities for Young Men and Women," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 37-45, February.
  11. Parsons, Donald O, 1991. "The Job Search Behavior of Employed Youth," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 597-604, November.
  12. Flinn, C. & Heckman, J., 1982. "New methods for analyzing structural models of labor force dynamics," Journal of Econometrics, Elsevier, vol. 18(1), pages 115-168, January.
  13. Lawrence M. Kahn & Stuart A. Low, 1984. "An Empirical Model of Employed Search, Unemployed Search, and Nonsearch," Journal of Human Resources, University of Wisconsin Press, vol. 19(1), pages 104-117.
  14. Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December.
  15. Devine, Theresa J. & Kiefer, Nicolas M., 1991. "Empirical Labor Economics: The Search Approach," OUP Catalogue, Oxford University Press, number 9780195059366.
  16. Omori, Yoshiaki, 1997. "Stigma Effects of Nonemployment," Economic Inquiry, Western Economic Association International, vol. 35(2), pages 394-416, April.
  17. Han, Aaron & Hausman, Jerry A, 1990. "Flexible Parametric Estimation of Duration and Competing Risk Models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 5(1), pages 1-28, January-M.
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