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The impacts of education and training on the labour market experiences of young adults

Author

Listed:
  • Kevin Denny

    (Institute for Fiscal Studies and University College Dublin)

  • Harmon, Harmon

    (Institute for Fiscal Studies)

Abstract

This paper uses pooled cross-section data on recent school leavers in Ireland to model the determinants of labour market status and wages for young adults. Firstly we use a multinomial logit model to analyze whether individuals exit school to employment, unemployment or higher education. Family background is an important predictor for participation in higher education reflecting the degree of rationing in the system. The level of educational attainment influences the probability of entering higher education or employment. The estimates for earnings functions show large differences across gender with males being rewarded significantly higher. The returns to training are positive though biased upwards by sample selection particularly for females.

Suggested Citation

  • Kevin Denny & Harmon, Harmon, 2000. "The impacts of education and training on the labour market experiences of young adults," IFS Working Papers W00/08, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:ifsewp:00/08
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    References listed on IDEAS

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    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    2. Kevin Denny & Colm Harmon, 2001. "Testing for sheepskin effects in earnings equations: evidence for five countries," Applied Economics Letters, Taylor & Francis Journals, vol. 8(9), pages 635-637.
    3. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-512, March.
    4. Martyn Andrews & Steve Bradley, 1997. "Modelling the Transition from School and the Demand for Training in the United Kingdom," Economica, London School of Economics and Political Science, vol. 64(255), pages 387-413, August.
    5. Christopher T. Whelan & Damian F. Hannan, 1999. "Class Inequalities in Educational Attainment among the Adult Population in the Republic of Ireland," The Economic and Social Review, Economic and Social Studies, vol. 30(3), pages 285-307.
    6. Kevin J Denny & Colm P Harmon, 2000. "Education Policy Reform and the Return to Schooling from Instrumental Variables," Working Papers 200012, School of Economics, University College Dublin.
    7. Callan, Tim & Harmon, Colm, 1999. "The economic return to schooling in Ireland," Labour Economics, Elsevier, vol. 6(4), pages 543-550, November.
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    Cited by:

    1. A. Davia, Maria, 2004. "Tackling multiple choices: a joint determination of transitions out of education and into the labour market across the European Union," ISER Working Paper Series 2004-22, Institute for Social and Economic Research.
    2. repec:zna:indecs:v:19:y:2021:i:4:p:189-209 is not listed on IDEAS
    3. McCoy, Selina & Smyth, Emer, 2003. "Educational Expenditure: Implications for Equality," Papers BP2004/4, Economic and Social Research Institute (ESRI).
    4. Pastore, Francesco, 2005. "To Study or to Work? Education and Labour Market Participation of Young People in Poland," IZA Discussion Papers 1793, Institute of Labor Economics (IZA).
    5. Giorgia Casalone & Eliana Baici, 2023. "Education, Off-the-Job Vocational Training, and Early Employment Outcomes: Evidence from Italy," Merits, MDPI, vol. 3(2), pages 1-15, May.
    6. Birca Alic, 2024. "Increasing Sustainable Employment By Involving Organisations In The Vocational Training Of The Unemployed," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 34-44, August.

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    More about this item

    Keywords

    youth; earnings; education;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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