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Title:The impact of education on unemployment incidence and re-employment success: Evidence from the US labour market PDF Logo
Authors:Riddell, W. Craig
Song, Xueda
Issue Date:2011
Series/Report no.:Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5572
Abstract:This study investigates the causal effects of education on individuals' transitions between employment and unemployment, with particular focus on the extent to which education improves re-employment outcomes among unemployed workers. Given that positive correlations between education and labour force transitions are likely to be confounded by the endogeneity of education, we make use of data on compulsory schooling laws and child labour laws as well as conscription risk in the Vietnam War period to create instrumental variables to identify the causal relationships. Results indicate that education significantly increases re-employment rates of the unemployed. Particularly large impacts are found in the neighborhoods of 12 and 16 years of schooling. Evidence on the impact of formal schooling on unemployment incidence is mixed.
Subjects:education
labour market transitions
unemployment
causal effects
compulsory schooling laws
child labour laws
Vietnam War draft
JEL:I20
J64
Persistent Identifier of the first edition:urn:nbn:de:101:1-201104133943
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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