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The role of hard-to-obtain information on ability for the school-to-work transition

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  • Barbara Mueller
  • Stefan Wolter

Abstract

When information about the abilities of job seekers is difficult to obtain, statistical discrimination by employers may be an efficient strategy in the hiring and wage-setting process. In this article, we use a unique, longitudinal survey that follows the PISA 2000 students in their early educational and work–life careers. We find that a deviance in the PISA test scores from what one would have predicted based on easy-to-obtain observable characteristics influences the probability of succeeding in the transition from compulsory schooling to a firm-based apprenticeship significantly but in a non-symmetric way. Only those who had a test result below their predicted result have significantly lower chances of getting an apprenticeship. We also find evidence that the importance of hard-to-obtain information on ability is further revealed in the course of the apprenticeship. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Barbara Mueller & Stefan Wolter, 2014. "The role of hard-to-obtain information on ability for the school-to-work transition," Empirical Economics, Springer, vol. 46(4), pages 1447-1471, June.
    • Handle: RePEc:spr:empeco:v:46:y:2014:i:4:p:1447-1471
    DOI: 10.1007/s00181-013-0709-2
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    Cited by:

    1. Holtmann, Anne Christine & Menze, Laura & Solga, Heike, 2017. "Persistent Disadvantages or New Opportunities? The Role of Agency and Structural Constraints for Low-Achieving Adolescents’ School-to-Work Transitions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 46(10), pages 2091-2113.
    2. Katharina Jaik & Stefan C. Wolter, 2016. "Lost in Transition: The Influence of Locus of Control on Delaying Educational Decisions," Economics of Education Working Paper Series 0118, University of Zurich, Department of Business Administration (IBW).
    3. Protsch, Paula, 2021. "Employers’ recruitment contexts and hiring preferences in the German youth labor market," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 73, pages 1-1.
    4. Jerrim, John & Lopez-Agudo, Luis Alejandro & Marcenaro-Gutierrez, Oscar D. & Shure, Nikki, 2017. "What happens when econometrics and psychometrics collide? An example using the PISA data," Economics of Education Review, Elsevier, vol. 61(C), pages 51-58.
    5. Katharina Jaik & Stefan C. Wolter, 2018. "From Dreams to Reality: Market Forces and Changes from Occupational Intention to Occupational Choice," Economics of Education Working Paper Series 0149, University of Zurich, Department of Business Administration (IBW), revised Oct 2018.
    6. Stefan C. Wolter & Maria Zumbuehl, 2017. "The native-migrant gap in the progression into and through upper-secondary education," Economics of Education Working Paper Series 0139, University of Zurich, Department of Business Administration (IBW).
    7. Uschi Backes-Gellner, 2021. "Insights into the Economic Benefits of VPET for Individuals: Theoretical and Empirical Results for Researchers and Practitioners," Economics of Education Working Paper Series 0180, University of Zurich, Department of Business Administration (IBW).
    8. Stratton Leslie S. & Datta Gupta Nabanita & Reimer David & Holm Anders, 2018. "Modeling Completion of Vocational Education: The Role of Cognitive and Noncognitive Skills by Program Type," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(4), pages 1-17, October.
    9. Joelle Latina & José V. Ramirez, 2017. "On the efficiency of school tracking: a perspective from outcomes in dual VET in Switzerland," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 51(1), pages 1-13, December.

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    More about this item

    Keywords

    Statistical discrimination; School-to-work transition ; PISA; I2; J24; J71;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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