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Educational Track, Networks and Labor Market Outcomes

  • Margolis, David N.

    ()

    (Paris School of Economics)

  • Simonnet, Véronique

    ()

    (TEAM, University of Paris 1)

Does the educational track (technical or professional, as opposed to general) provide individuals with networks that are useful in the labor market? And how do these networks help? In this paper, we consider the effect of the educational track on the means by which individuals find employment, the time it takes to find their first stable job and their earnings once the school-to-work transition is well established. Using data in French school leavers from 1969-1992, we find that the educational track significantly influences the means by which jobs are found, favoring networks in particular, as well as having an independent direct effect on the speed of transition into the labor market and later earnings. We also find that the means by which a job was found significantly affects the time to first job and earnings, and in a way that offsets the direct effect of the educational track on our outcome variables.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 699.

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Length: 42 pages
Date of creation: Jan 2003
Date of revision:
Publication status: published in French as "Filières éducatives, réseaux et réussite professionnelle" in Economie et prévision, 2005164-165, 2005.
Handle: RePEc:iza:izadps:dp699
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  1. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, vol. 81(5), pages 1407-18, December.
  2. Mortensen, D. T. & Vishwanath, T., 1995. "Personal contacts and earnings: It is who you know!," Labour Economics, Elsevier, vol. 2(1), pages 103-104, March.
  3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  4. Donald W. K. Andrews & Moshe Buchinsky, 2000. "A Three-Step Method for Choosing the Number of Bootstrap Repetitions," Econometrica, Econometric Society, vol. 68(1), pages 23-52, January.
  5. Rebick, Marcus E, 1998. "The Importance of Networks in the Market for University Graduates in Japan: A Longitudinal Analysis of Hiring Patterns," CEPR Discussion Papers 1816, C.E.P.R. Discussion Papers.
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