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Education and Unemployment: A French-German Comparison

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  • Lauer, Charlotte

Abstract

This paper analyses the link between educational attainment and unemployment risk in a French-German comparison, based on a discrete time competing risks hazard rate model applied to comparable microdata sets. The unemployment risk is broken down into the risk of entering unemployment and the risk, once unemployed, of not getting reemployed. The paper examines the impact of education on both risk components. France faces a higher unemployment rate than West-Germany, due to a higher risk of entering unemployment whereas the risk, when unemployed, of not getting reemployed is lower than in Germany. The risk of entering unemployment is particularly high for French employees with poor education, but higher education graduates face a higher risk of getting unemployed in Germany than in France. Concerning the reemployment prospects of the unemployed, they are better in France than in West-Germany at all education levels, but particularly for the unemployed with a low education level. The effect of education on both risk components does not differ significantly across genders, all else equal.

Suggested Citation

  • Lauer, Charlotte, 2003. "Education and Unemployment: A French-German Comparison," ZEW Discussion Papers 03-34, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:1344
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Elke Lüdemann & Ralf Wilke & Xuan Zhang, 2006. "Censored quantile regressions and the length of unemployment periods in West Germany," Empirical Economics, Springer, vol. 31(4), pages 1003-1024, November.
    2. Bernd Fitzenberger & Alfred Garloff, 2008. "Unemployment, Labor Market Transitions, And Residual Wage Dispersion," Scottish Journal of Political Economy, Scottish Economic Society, vol. 55(5), pages 561-590, November.
    3. Lauer, Charlotte, 2004. "Education, Gender and Earnings in France and Germany: Level and Dispersion Effects," ZEW Discussion Papers 04-54, ZEW - Leibniz Centre for European Economic Research.
    4. Ralf A. Wilke, 2005. "New Extimates of the Duration and Risk of Unemployment for West-Germany," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 125(2), pages 207-237.
    5. Weber, Andrea Maria, 2004. "Wann kehren junge Mütter auf den Arbeitsmarkt zurück? Eine Verweildaueranalyse für Deutschland," ZEW Discussion Papers 04-08, ZEW - Leibniz Centre for European Economic Research.
    6. Alba, Alfonso & Arranz, José M. & Muñoz-Bullón, Fernando, 2006. "Unemployment duration, unemployment benefits and recalls," DEE - Working Papers. Business Economics. WB wb066218, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    7. Ammermueller, Andreas & Kuckulenz, Anja & Zwick, Thomas, 2009. "Aggregate unemployment decreases individual returns to education," Economics of Education Review, Elsevier, vol. 28(2), pages 217-226, April.
    8. Westerheide Nina & Kauermann Goeran, 2012. "Flexible Modelling of Duration of Unemployment Using Functional Hazard Models and Penalized Splines: A Case Study Comparing Germany and the UK," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 16(1), pages 1-27, January.
    9. Dragana Djurdjevic, 2005. "Unemployment and Under-Employment: The Case of Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 141(I), pages 23-70, March.
    10. International Monetary Fund, 2004. "France: Selected Issues," IMF Staff Country Reports 2004/346, International Monetary Fund.
    11. Alba-Ramirez, Alfonso & Arranz, Jose M. & Munoz-Bullon, Fernando, 2007. "Exits from unemployment: Recall or new job," Labour Economics, Elsevier, vol. 14(5), pages 788-810, October.
    12. Alfonso Alba & Jose Maria Arranz & Fernando Muñoz-Bullón, 2012. "Re-employment probabilities of unemployment benefit recipients," Applied Economics, Taylor & Francis Journals, vol. 44(28), pages 3645-3664, October.
    13. Agne Lauzadyte, 2007. "A Statistical Programme Assignment Model," Economics Working Papers 2007-18, Department of Economics and Business Economics, Aarhus University.

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    More about this item

    Keywords

    Education; unemployment; hazard rate model;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • I2 - Health, Education, and Welfare - - Education

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