This paper proposes Heckprobit estimates of the determinants of success in finding a job in a sample of young (15-30) Poles, controlling for the possible selection bias caused by excluding those in education. There is evidence of sample selection bias in the case of young men, suggesting that they more than women use economic factors to make their educational choices. Education is an important determinant of success in the labor market. The instrumental variables used in the selection equation – the local unemployment rate, expected lifetime earnings and the opportunity cost of education – have a statistically significant impact on the probability of being in education. In contrast with several previous studies relative to mature market economies, in high unemployment areas young people prefer to seek a job rather than study. In turn, this contributes to the persistence of regional unemployment.

“To Study or to Work? Education and Labour Market Participation of Young People in Poland”

PASTORE, Francesco
2012

Abstract

This paper proposes Heckprobit estimates of the determinants of success in finding a job in a sample of young (15-30) Poles, controlling for the possible selection bias caused by excluding those in education. There is evidence of sample selection bias in the case of young men, suggesting that they more than women use economic factors to make their educational choices. Education is an important determinant of success in the labor market. The instrumental variables used in the selection equation – the local unemployment rate, expected lifetime earnings and the opportunity cost of education – have a statistically significant impact on the probability of being in education. In contrast with several previous studies relative to mature market economies, in high unemployment areas young people prefer to seek a job rather than study. In turn, this contributes to the persistence of regional unemployment.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11591/192124
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