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Does relative age affect speed and quality of transition from school to work?

Author

Listed:
  • Luca Fumarco
  • Alessandro Vandromme
  • Levi Halewyck
  • Eline Moens
  • Stijn Baert

Abstract

We are the first to estimate the impact of relative age (i.e., the difference in classmates’ ages) on both speed and quality of individuals’ transition from education to the labour market. Moreover, we are the first to explore whether and how this impact passes through characteristics of students’ educational career. We use rich data pertaining to schooling and to labour market outcomes one year after graduation to conduct instrumental variables analyses. We find that a one-year increase in relative age increases the likelihood of (i) being employed then by 3.5 percentage points, (ii) having a permanent contract by 5.1 percentage points, and (iii) having full-time employment by 6.5 percentage points. These relative age effects are partly mediated by intermediate outcomes such as having had a schooling delay at the age of sixteen or taking on student jobs. The final mediator is particularly notable as no earlier studies examined relative age effects on student employment.

Suggested Citation

  • Luca Fumarco & Alessandro Vandromme & Levi Halewyck & Eline Moens & Stijn Baert, 2022. "Does relative age affect speed and quality of transition from school to work?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 22/1037, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:22/1037
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    File URL: http://wps-feb.ugent.be/Papers/wp_22_1037.pdf
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    References listed on IDEAS

    as
    1. Claire Crawford & Lorraine Dearden & Ellen Greaves, 2013. "The impact of age within academic year on adult outcomes," IFS Working Papers W13/07, Institute for Fiscal Studies.
    2. Martina Zweimuller, 2013. "The Effects of School Entry Laws on Educational Attainment and Starting Wages in an Early Tracking System," Annals of Economics and Statistics, GENES, issue 111-112, pages 141-169.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    relative age; school starting age; labour market transition;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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