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Educational Track, Networks and Labor Market Outcomes

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  • Margolis, David N.

    () (Paris School of Economics)

  • Simonnet, Véronique

    () (TEAM, University of Paris 1)

Abstract

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.

Suggested Citation

  • Margolis, David N. & Simonnet, Véronique, 2003. "Educational Track, Networks and Labor Market Outcomes," IZA Discussion Papers 699, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp699
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    References listed on IDEAS

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    1. 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.
    2. Rebick, Marcus E, 2000. "The Importance of Networks in the Market for University Graduates in Japan: A Longitudinal Analysis of Hiring Patterns," Oxford Economic Papers, Oxford University Press, vol. 52(3), pages 471-496, July.
    3. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, vol. 81(5), pages 1407-1418, December.
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    5. 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.
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    Cited by:

    1. Stupnytska, Yuliia, 2015. "Asymmetric information in a search model with social contacts," Center for Mathematical Economics Working Papers 548, Center for Mathematical Economics, Bielefeld University.
    2. Emanuela Ghignoni, 2016. "The ‘great escape’ from Italian Universities: Do labour market recruitment channels matter?," QUADERNI DI ECONOMIA DEL LAVORO, FrancoAngeli Editore, vol. 2016(106), pages 49-75.
    3. Michele Pellizzari, 2010. "Do Friends and Relatives Really Help in Getting a Good Job?," ILR Review, Cornell University, ILR School, vol. 63(3), pages 494-510, April.
    4. Zaharieva, Anna, 2013. "Social welfare and wage inequality in search equilibrium with personal contacts," Labour Economics, Elsevier, vol. 23(C), pages 107-121.
    5. Lorenzo Cappellari, 2004. "High school types, academic performance and early labour market outcomes," CHILD Working Papers wp03_04, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    6. Werner Eichhorst, 2015. "Does vocational training help young people find a (good) job?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 112-112, January.
    7. Michèle Mansuy & Olivier Marchand, 2004. "De l’école à l’emploi : des parcours de plus en plus complexes," Économie et Statistique, Programme National Persée, vol. 378(1), pages 3-13.
    8. Steve Bradley & Giuseppe Migali, 2012. "The direct and indirect effects of education policy on school and post school outcomes," Working Papers 24958831, Lancaster University Management School, Economics Department.
    9. Aleksander Kucel & Montserrat Vilalta-Bufi, 2012. "Why do university graduates regret their study program? A comparison between Spain and the Netherlands," Working Papers in Economics 279, Universitat de Barcelona. Espai de Recerca en Economia.
    10. Francois Fontaine, 2003. "Do workers really benefit from their social networks?," Macroeconomics 0311002, University Library of Munich, Germany, revised 26 Aug 2004.
    11. Liliane Bonnal & David Clément & Sylvie Mendes, 2004. "L'accès au premier emploi au cours des années 1990 : le cas des apprentis et des lycéens," Économie et Statistique, Programme National Persée, vol. 378(1), pages 35-53.
    12. Stupnytska, Yuliia & Zaharieva, Anna, 2015. "Explaining U-shape of the referral hiring pattern in a search model with heterogeneous workers," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 211-233.
    13. Michele Mosca & Francesco Pastore, 2009. "Wage Effects of Recruitment Methods: The Case of the Italian Social Service Sector," AIEL Series in Labour Economics,in: Marco Musella & Sergio Destefanis (ed.), Paid and Unpaid Labour in the Social Economy. An International Perspective, edition 1, chapter 8, pages 115-141 AIEL - Associazione Italiana Economisti del Lavoro.
    14. Alina Mariuca Ionescu, 2012. "How does education affect labour market outcomes?," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 4(2), pages 130-144, Decembre.
    15. Paola Giuliano, 2008. "Culture and the Family: An Application to Educational Choices in Italy," Rivista di Politica Economica, SIPI Spa, vol. 98(4), pages 3-38, July-Augu.
    16. Zaharieva, Anna, 2015. "Social contacts and referrals in a labor market with on-the-job search," Labour Economics, Elsevier, vol. 32(C), pages 27-43.
    17. DUGUET Emmanuel & SIMONNET Veronique, 2004. "The participation of couples in the labor market: an econometric analysis," Labor and Demography 0411005, University Library of Munich, Germany.
    18. Bilyk Olga & Sheron Iuliia, 2012. "Do informal networks matter in the Ukrainian labor market?," EERC Working Paper Series 12/11e, EERC Research Network, Russia and CIS.
    19. Stupnytska, Yuliia & Zaharieva, Anna, 2015. "Explaining the U-Shape of the Referral Hiring Pattern in a Search Model with Heterogeneous Workers," Center for Mathematical Economics Working Papers 511, Center for Mathematical Economics, Bielefeld University.
    20. Emmanuel Duguet & Véronique Simonnet, 2007. "Labor market participation in France: an asymptotic least squares analysis of couples’ decisions," Review of Economics of the Household, Springer, vol. 5(2), pages 159-179, June.
    21. Werner Eichhorst & Núria Rodríguez-Planas & Ricarda Schmidl & Klaus F. Zimmermann, 2015. "A Road Map to Vocational Education and Training in Industrialized Countries," ILR Review, Cornell University, ILR School, vol. 68(2), pages 314-337, March.

    More about this item

    Keywords

    school-to-work transition; Educational system; educational track; networks;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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