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A distance function approach to school-leavers’ efficiency in the school-to-work transition

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Two conventional approaches to study the school-to-work transition are the duration period to the first job and the satisfaction in (or for some specific characteristics of) the first job. This paper compares these two approaches with an analysis of the efficiency of school-leavers? first job achievement. The transformation of resources, when leaving school, into achieved first job characteristics is analysed using a multi-input multi-output stochastic distance function approach. This allows to assess the efficiency of this conversion process. Inter-individual differences in transformation efficiency are important, especially when policy makers want to focus on reasons for resource-inefficiency that are beyond the control of the individual. The empirical analysis is based on the 1978 birth cohort of the Flemish SONAR data. The variation in efficiency is explained in terms of individual-specific conversion factors that influence job efficiency: the social (family) background, the motivation to work, the number of search channels used and the sector of employment. The most important positive factor is education (a higher number of successful school years). The results are compared with the average duration to the first job and average job satisfaction. The efficiency analysis provides additional information. Most attention is attracted to the role of the social background, more specifically having a non-Belgian background, for the school-to-work transition.

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Paper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 10/682.

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Length: 28 pages
Date of creation: Oct 2010
Handle: RePEc:rug:rugwps:10/682
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  1. Luis Diaz-Serrano & Jose A. Cabral Vieira, 2005. "Low-pay higher pay and job satisfaction within the European Union: empirical evidence from fourteen countries," Economics, Finance and Accounting Department Working Paper Series n1560405, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
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