Labour Market Prospects, Search Intensity and Transition from College to Work

Bas van der Klaauw, Aico van Vuuren and Peter Berkhout

No 4515, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: In this Paper, we develop a structural model for the job search behaviour of students entering the labour market. The model includes endogenous search effort and on-the-job searches. Since students usually do not start a regular job before graduation but start job searches earlier, our model is non-stationary even if all structural parameters are constant. The model explains the common finding that a substantial share of individuals start working immediately upon graduation. We estimate the model using a unique data set of individuals who completed undergraduate education in the Netherlands between 1995 and 2001. Our estimation results show that a 1% decrease in unemployment rate increases wage offers by 3%, that there are substantial returns to work experience and that individuals devote less effort to job search than optimal. Employment rates at graduation could be increased from 40% to 65% if all individuals start job searches 6 month prior to graduation.

Keywords: Business cycle; Structural estimation; Return-to-work experience (search for similar items in EconPapers)
Date: 2004-08
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (10)

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Related works:
Working Paper: Labor market prospects search intensity and the transition from college to work (2005)
Working Paper: Labor Market Prospects, Search Intensity and the Transition from College to Work (2004)
Working Paper: Labor Market Prospects, Search Intensity and the Transition from College to Work (2004)
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