Garrouste, Christelle and Kozovska, Kornelia and Arjona Perez, Elena (2010): Education and Long-Term Unemployment. Published in: JRC Scientific and Technical Reports No. EUR 24450 (2010): pp. 1-29.
Download (417Kb) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Education and Long-Term Unemployment|
|Keywords:||unemployment differentials; education and long-term unemployment; regional competitiveness|
|Subjects:||J - Labor and Demographic Economics > J0 - General > J01 - Labor Economics: General
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J64 - Unemployment: Models, Duration, Incidence, and Job Search
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
|Depositing User:||Christelle Garrouste|
|Date Deposited:||17. Sep 2010 13:35|
|Last Modified:||08. Jan 2014 00:40|
Alavinia, S., and A. Burdorf (2008). Unemployment and retirement and ill-health: a cross-sectional analysis across European countries. Int Arch Occup Environ Health, 82: 39–45.
Amilon, A., and M. Wallette (2009). Work Absence - A Signalling Factor for Temporary Workers? Labour, 23(1): 171-194.
Annoni, P. and K.Kozovska (2010). EU Regional Competitiveness Index 2010. JRC Scientific and Technical Report, EUR 24346. Luxembourg: Publication Office of the European Union.
Arjona Perez, E. Garrouste, C. and K.Kozovska (2010).Towards a benchmark on the contribution of Education and Training to employability: a discussion note. JRC Scientific and Technical Report, EUR 24147. Luxembourg: Publication Office of the European Union.
Arrow, K. (1973) “Higher education as a filter.” Journal of Public Economics, 2: 193-216.
Arulampalam, W., Gregg, P., and M. Gregory (2001). “Unemployment Scarring.” The Economic Journal, 111: F577-F584.
Australian Council of Social Services (2005). Measuring Long Term Unemployment in Australia. Strawberry Hills, NSW: Australian Council of Social Services.
Becker, G. (1964). Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education. National Bureau of Economic Research, New York.
Blossfeld, H.-P. and C.Hakim (eds) (1997) Between Equalization and Marginalization: Women Working Part-time in Europe and the United Stages of America. Oxford: Oxford University Press.
Boeri, T., Layard, R., and S. Nickell (2000). “Welfare-to-Work and the Fight against Long-term Unemployment.” DfEE Research Report No. 206.
Brauns, H., Gangl, M. and S. Scherer (2001). “Education and unemployment: patterns of labour market entry in France, the United Kingdom and West Germany.” Working Paper. Manheim Centre for European Social Research.
Brunello, G., Garibaldi, P. and E. Wasmer. (2009) Education and Training in Europe. Oxford: Oxford University Press.
Burridge, P. and I. Gordon (1981). “Unemployment in the British Metropolitan Labour Areas.” Oxford Economic Papers, 33: 274-97.
Cedefop (2004). Workplace learning : reaching those with low skills and older workers. Thessaloniki : CEDEFOP. Available online http://www.trainingvillage.gr/etv/HomePages/Front_page_news/LLL03/WorkplaceLearning.pdf application/pdf (.pdf) Downloadable document (EN) .
Clark, A. (1996) “Working and well-being: some international evidence.” Paris: OECD
Elhorst, P. (2003). “The Mystery of Regional Unemployment Differentials: A Survey of Theoretical and Empirical Explanations.” Journal of Economic Surveys, 17: 709-48.
Evans, P., and McCormick, B. (1994). The New Pattern of Regional Unemployment: Causes and Policy Significance. The Economic Journal, 104: 633-47.
European Commission (2008). “Employment in Europe 2008”. Commission staff Working Document. Brussels: European Commission.
European Commission (2009). “Progress towards the Lisbon Objectives in Education and Training: Indicators and benchmarks 2009.” Commission Staff Working Document. Brussels: European Commission.
European Council (2010). Conclusions of the European Council (25/26 March 2010). EUCO 7/10. Available online: http://www.consilium.europa.eu/ueDocs/cms_Data/docs/pressData/en/ec/113591.pdf
Giesecke, J. and M. Groß (2003) “Temporary Employment: Chance or Risk?” European Sociological Review, 19: 161-177.
Green, A.E. (1984). “Considering long-tern unemployment as a criterion for regional policy aid.” Area, 16/(3): 209-218.
Güell, M. (2003) “Fixed-Term Contracts and the Duration Distribution of Unemployment.” IZA Discussion Papers No. 791.
Heckman, J. and G. Borjas (1980) “Does unemployment cause future unemployment? Definitions, questions and answers from a continous time model of heterogeneity and state dependence.” Economica, 47 (187): 247-283.
Hilbe, J.M. (2009). Logistic Regression Models. Boca Raton, FL: Chapman & Hall/CRC.
Ho, K. And R. Tan (2008) “Nonmonotonic relationship between human capital and unemployment: an exploratory study with empirical evidence on Signapore.” Applied Economics Letters, 15: 1177-1185.
Holzer, H.J. (1993). “Structural/Frictional and Demand-Deficient Unemployment in Local Labour Markets.” Industrial Relations, 32: 307-28.
Kettunen, J. ( 1994) “The effects of education on the duration of unemployment.” Labour, 8: 331-352.
Korpi, T. (1997) “Is utility related to employment status? Employment, unemployment, labour market policies and subjective well-being among Swedish youth.” Labour economics, 4: 125-147.
Machin, S. and A. Manning (1999). “The causes and consequences of long-term unemployment in Europe.” Handbook of Labour Economics, 3(3): 3085-3139.
Malizia, E.E., and S. Ke (1993). “The Influence of Economic Diversity on Unemployment and Stability.” Journal of Regional Studies, 33: 221-35.
McQuaid, R. and Lindsay C. (2005) “The Concept of Employability.” Urban Studies, 42 (2): 197- 219.
Mincer, J. (1994) “Human Capital: A Review.” In Clark Kerr et al. (eds) Labour economic and Industrial Relations: Markets and Institutions. Cambridge: Harvard University Press.
Mincer, J. (1974) Schooling, Experience and Earning. National Bureau of Economic Research, New York.
Müller, W. and Gangl, M. (2003) “The transition from school to work: a European perspective”, in W. Müller and M. Gangl (eds) Transition from Education to Work in Europe. The Integration of Youth into EU LabourMarkets, pp.1–22. Oxford: Oxford University Press.
Nagler, J. (1994). “Scobit: an Alternative Estimator to Logit and Probit.”American Journal of Political Science, 38 (1): 230-255.
O'Connell, P.J., McGuinness, S., and E. Kelly (2010). “A Statistical Profiling Model of Long-Term Unemployment Risk in Ireland.” ESRI Working Paper No.345.
OECD (2002) OECD Employment Outlook. Paris: OECD.
Partridge, M.D., and Rickman, D.S. (1995). “Differences in State Unemployment Rates: the Role of Labour and Product Market Structural Shifts.” Southern Economic Journal, 62: 89-106.
Siegers, J.J. (1983). “An Economic-Demographic Ten-Equation Model.” De Economist, 131: 400-43.
Simon, C.J. (1988). “Frictional Unemployment and the Role of Industrial Diversity.” Quarterly Journal of Economics, 103: 715-28.
Spence, M. (1981) “Signaling, screening, and information.” In Rose, S. (ed) Studies in Labour Markets. Chicago: University of Chicago Press.
Stigler, G. (1962) “Information in the la bor market.” Journal of Political Economy, 94-105.
Winkelmann, R. (1996) “Employment prospects and skills acquisition of apprenticeship trained workers in Germany.” Industrial and Labour Relations Review, 49: 658-672.
Winkelmann, L. and R. Winkelmann (1998) “Why are the unemployed so unhappy? Evidence from panel data.” Economica, 65: 1-15.
Wolbers, M. (2000). “The effects of level of education on mobility between employment and unemployment in the Netherlands.” European Sociological Review, 16 (2): 185-200.
Wong, G., Henson, H., and A. Roy (2005). “Predicting Long-Term Unemployment in Canada: Prospects and Policy Implications.” In W. Vroman and V. Brusentsev (eds.) Unemployment Compensation Throughout the World: A Comparative Analysis, Chapter 11, pp.309-333.