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Title:To study or to work? Education and labour market participation of young people in Poland PDF Logo
Authors:Pastore, Francesco
Issue Date:2005
Series/Report no.:IZA Discussion Papers 1793
Abstract:This paper proposes Heckprobit estimates of the determinants of labour market participation of a sample of young (15-30) Poles, controlling for the sample selection bias caused by excluding those in education. There is evidence of sample selection bias in the case of young men, suggesting that they obey more than women to economic factors in making their educational choices. Education is an important determinant of the success in the labour market. The instrumental variables used in the selection equation the local unemployment rate, expected lifetime earnings and the opportunity cost of education have a statistically significant impact on the probability to be in education. In contrast with several previous studies relative to mature market economies, in high unemployment voivodships young people prefer to seek a job, rather than studying. In turn, this contributes to make regional unemployment persistent.
Subjects:youth unemployment
education
heckprobit
Lisbon strategy
Poland
JEL:C35
I2
J24
P3
P52
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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