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Pathways from school to work in the developing world

Pathways from school to work in the developing world This paper uses novel micro data from the ILO-STWT surveys to provide evidence on the duration, endpoint, and determinants of the transition from school to work in a sample of 23 low- and middle-income countries around the world. The paper analyzes both transition to the first job and to the first stable job. It also illustrates the effects of several correlates, including age of school leaving, gender, work while attending school, and others on the probability of transition and on its duration. The negative effects of low levels of human capital and high levels of population growth on job finding rates are offset by widespread poverty and lack of unemployment insurance, which lead overall to faster transitions in low-income compared to middle-income economies. By lowering reservation wages and speeding transitions, however, these forces lead to worse matches, as measured by the probability of attaining stable employment in the long run, highlighting the trade-off that policy makers face in developing countries. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png IZA Journal of Labor & Development Springer Journals

Pathways from school to work in the developing world

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Publisher
Springer Journals
Copyright
Copyright © 2017 by The Author(s).
Subject
Economics; Labor Economics; Population Economics; Development Economics
eISSN
2193-9020
DOI
10.1186/s40175-016-0067-5
Publisher site
See Article on Publisher Site

Abstract

This paper uses novel micro data from the ILO-STWT surveys to provide evidence on the duration, endpoint, and determinants of the transition from school to work in a sample of 23 low- and middle-income countries around the world. The paper analyzes both transition to the first job and to the first stable job. It also illustrates the effects of several correlates, including age of school leaving, gender, work while attending school, and others on the probability of transition and on its duration. The negative effects of low levels of human capital and high levels of population growth on job finding rates are offset by widespread poverty and lack of unemployment insurance, which lead overall to faster transitions in low-income compared to middle-income economies. By lowering reservation wages and speeding transitions, however, these forces lead to worse matches, as measured by the probability of attaining stable employment in the long run, highlighting the trade-off that policy makers face in developing countries.

Journal

IZA Journal of Labor & DevelopmentSpringer Journals

Published: Jan 13, 2017

References