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Education and Long-Term Unemployment

Author

Listed:
  • Garrouste, Christelle
  • Kozovska, Kornelia
  • Arjona Perez, Elena

Abstract

This paper investigates the relationship between education and long-term unemployment when considering regional economic differences and other relevant variables at the individual and at the local level, using data from the 2004-2006 EU-SILC (11 countries). The analysis has been run using both a binary logit model and a binary scobit model. Our results suggest that the probability of an individual to be in long-term unemployment decreases with her educational level. There is a decrease in returns to education after the age of 40, which confirms the assumption of an obsolescence of skills defended in the human capital literature. With regard to the regional settings, younger workers (20-30) and older workers (50-65) tend to benefit more from the dynamics offered by highly competitive regions.

Suggested Citation

  • Garrouste, Christelle & Kozovska, Kornelia & Arjona Perez, Elena, 2010. "Education and Long-Term Unemployment," MPRA Paper 25073, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:25073
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    References listed on IDEAS

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    1. The winner takes it all (part two)
      by Byte Size Story in Byte-Size Story on 2020-10-19 10:01:00

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    1. Wojdyło-Preisner Monika & Zawadzki Kamil, 2015. "Specificity Of Long-Term Unemployment Risk Among Creative Economy Workers / Specyfika Ryzyka Długookresowego Bezrobocia Wśród Pracowników Ekonomii Kreatywnej," Comparative Economic Research, Sciendo, vol. 18(3), pages 37-58, August.
    2. Turan, Güngör, 2017. "An Empirical Analysis on the Long-term Relation Between Unemployment and Higher Education in Turkey," MPRA Paper 77766, University Library of Munich, Germany.
    3. Bouyon, Sylvain, 2015. "Home ownership, labour markets and the economic crisis," ECRI Papers 10690, Centre for European Policy Studies.
    4. Juha Hämäläinen & Pasi Matikainen, 2018. "Mechanisms and Pedagogical Counterforces of Young People’s Social Exclusion: Some Remarks on the Requisites of Social Sustainability," Sustainability, MDPI, vol. 10(7), pages 1-28, June.
    5. Mindaugas Butkus & Kristina Matuzeviciute & Dovile Rupliene & Janina Seputiene, 2020. "Does Unemployment Responsiveness to Output Change Depend on Age, Gender, Education, and the Phase of the Business Cycle?," Economies, MDPI, vol. 8(4), pages 1-29, November.
    6. Oancea, Bogdan & Pospisil, Richard & Dragoescu, Raluca, 2016. "A logit model for the estimation of the educational level influence on unemployment in Romania," MPRA Paper 81719, University Library of Munich, Germany, revised 07 Sep 2016.

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    More about this item

    Keywords

    unemployment differentials; education and long-term unemployment; regional competitiveness;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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