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 C.E.P.R. Discussion Papers

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
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://cepr.org/publications/DP4515 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

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)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:4515

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP4515

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().