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Transition from School to Work: Search Time and Job Duration

Author

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  • Bratberg, Espen

    (University of Bergen)

  • Nilsen, Øivind Anti

    (Norwegian School of Economics)

Abstract

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.

Suggested Citation

  • Bratberg, Espen & Nilsen, Øivind Anti, 1998. "Transition from School to Work: Search Time and Job Duration," IZA Discussion Papers 27, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp27
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    References listed on IDEAS

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    Cited by:

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    3. Ramoni Perazzi, Josefa & Orlandoni Merli, Giampaolo & Torres Rivas, Elizabeth & Zambrano, Angel, 2017. "Analysis of the duration of unemployment and outcomes for unemployed persons in the Bolivarian Republic of Venezuela," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    4. LIU Yang, 2016. "Employment and Starting Wages of New Graduates in China: Using the latest available survey data," Discussion papers 16021, Research Institute of Economy, Trade and Industry (RIETI).
    5. Cooke, L. P., 2003. "A comparison of initial and early life course earnings of the German secondary education and training system," Economics of Education Review, Elsevier, vol. 22(1), pages 79-88, February.
    6. Kong Jun & Jiang Fan, 2011. "Factors Affecting Job Opportunities for University Graduates in China---the Evidence from University Graduates in Beijing," Research in World Economy, Research in World Economy, Sciedu Press, vol. 2(1), pages 24-37, April.
    7. Riccardo Natoli & Beverley Jackling & Asheley Jones, 2018. "Examining the Usefulness of an Accounting Work‐readiness Program as Perceived by Employed Program Graduates," Australian Accounting Review, CPA Australia, vol. 28(3), pages 345-355, September.

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    More about this item

    Keywords

    school-to-work transition; job duration; search time; wages;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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