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To Study or to Work?

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  • Francesco Pastore

Abstract

This paper proposes Heckman probit (Heckprobit) estimates of the determinants of success in finding a job in a sample of young (age 15-30) Poles, controlling for the possible selection bias caused by excluding those in school. There is evidence of sample selection bias in the case of young men, suggesting that they use economic factors to make their educational choices more than women do. 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 pursuing an education. In contrast to several previous studies relative to mature market economies, ours found that in high unemployment areas, young people prefer to seek a job rather than study. This in fact contributes to the persistence of regional unemployment.

Suggested Citation

  • Francesco Pastore, 2012. "To Study or to Work?," Eastern European Economics, Taylor & Francis Journals, vol. 50(3), pages 49-78, May.
    • Handle: RePEc:mes:eaeuec:v:50:y:2012:i:3:p:49-78
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    Citations

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    Cited by:

    1. Fabrizio Pompei & Ekaterina Selezneva, 2015. "Education Mismatch, Human Capital and Labour Status of Young People across European Union Countries," Working Papers 347, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    2. Waliu Olawale Shittu & Norehan Abdullah & Habiba Muhammed Bello Umar, 2019. "Does Fertility Affect Female Labour Participation Differently in Malaysia and Singapore?," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(2), pages 201-217, June.
    3. Pompei, Fabrizio & Selezneva, Ekaterina, 2021. "Unemployment and education mismatch in the EU before and after the financial crisis," Journal of Policy Modeling, Elsevier, vol. 43(2), pages 448-473.
    4. Enrico Marelli & Elena Vakulenko, 2016. "Youth unemployment in Italy and Russia: Aggregate trends and individual determinants," The Economic and Labour Relations Review, , vol. 27(3), pages 387-405, September.
    5. Aina, Carmen & Baici, Eliana & Casalone, Giorgia & Pastore, Francesco, 2019. "Delayed Graduation and University Dropout: A Review of Theoretical Approaches," IZA Discussion Papers 12601, Institute of Labor Economics (IZA).
    6. Enrico MARELLI & Elena VAKULENKO, 2014. "Youth Unemployment in Italy and Russia: Aggregate Trends and the Role of Individual Determinants," Working papers of the Department of Economics - University of Perugia (IT) 0001/2014, Università di Perugia, Dipartimento Economia.
    7. Ghignoni, Emanuela & Verashchagina, Alina, 2014. "Educational qualifications mismatch in Europe. Is it demand or supply driven?," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 670-692.
    8. Alam, Khorshed & Mamun, Shamsul Arifeen Khan, 2016. "The relationship between labour force status and educational attainment: Evidence from a system of simultaneous equations model," Economic Analysis and Policy, Elsevier, vol. 52(C), pages 55-65.
    9. Anna Baranowska-Rataj & Iga Magda, 2015. "The impact of the minimum wage on job separations and working hours among young people in Poland," Working Papers 75, Institute of Statistics and Demography, Warsaw School of Economics.
    10. Leonora Risse, 2020. "Leaning in: Is higher confidence the key to women's career advancement?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 23(1), pages 43-77.

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