The Effect of Labour Market Conditions on the Time-to-Completion of Higher Education in Denmark

Nabanita Datta Gupta and Mark An

Nationaløkonomisk tidsskrift, 2005, vol. 2005, issue 1, 81-103

Abstract: The effect of labour market conditions on the time-to-completion of higher education is analysed on a sample of high school graduates and equivalents drawn from the 0.5% Danish Longitudinal Sample database. A semi-parametric hazard model of education duration with correction for unobserved heterogeneity is proposed and estimated. Results indicate that completion hazard is significantly affected by individual background characteristics, program-specific factors and labour market variables. The expected wage upon completion significantly increases degree completion hazard while the higher the individual's own earnings while studying, the lower the completion hazard. However, the unemployment degree that students may expect to face upon graduation does not, as expected, have a delaying impact on education completion.

Keywords: Labour market conditions; education (search for similar items in EconPapers)
JEL-codes: A10 (search for similar items in EconPapers)
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:jdaecn:0163

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