Transitioning from the University to the Workplace: A Duration Model with Grouped Data

Manuel Salas-Velasco ()
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Manuel Salas-Velasco: Facultad de Ciencias Económicas y Empresariales, Campus Cartuja, Universidad de Granada, 18071 Granada, Spain

Stats, 2024, vol. 7, issue 3, 1-13

Abstract: Labor market surveys usually measure unemployment duration in time intervals. In these cases, traditional duration models such as Cox regression and parametric survival models are not suitable for studying the duration of unemployment spells. In order to deal with this above issue, we use Han and Hausman’s ordered logit model for grouped durations, which has more flexibility than standard specifications. In particular, its flexibility arises from the fact that we do not need to specify any functional form for the baseline hazard function—it also circumvents problems associated with heterogeneity. The focus of interest is on the first unemployment duration of higher education graduates. The analysis is accomplished by using a large dataset from a graduate survey of Spanish university graduates. The results show that the university-to-work transition of higher education graduates is significantly associated with the graduate’s age, participation in internship programs, field of study, type of university, and gender. Specifically, graduates who participated in internship programs, engineering graduates, and graduates from private universities experience a smooth transition.

Keywords: higher education; Han–Hausman ordered logit model; survival analysis; university-to-work transition (search for similar items in EconPapers)
JEL-codes: C1 C10 C11 C14 C15 C16 (search for similar items in EconPapers)
Date: 2024
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