School-to-work transitions in Europe: Speed of convergence to permanent employment

Christelle Garrouste and Massimo Loi ()

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Abstract: In a context of intensive and global economic competition, European countries are growingly concerned with the consequences of increasing numbers of young people temporarily or permanently prevented from entering the job market and the difficulties faced by college and university graduates to find adequate employment. This study is concerned with analyzing the speed of transition of students to permanent employment as a proxy of professional stability, and by identifying possible discriminatory effects in selected countries. The research questions are addressed with a Cox survival model and a continuous-time Markov chain model where each individual can transit non-sequentially between the following Markov states: (1) education; (2) inactivity; (3) unemployment; (4) fixedterm/temporary employment; and (5) permanent employment (the 5th state being a non-absorbing steady state). The model is tested using the longitudinal ECHP data in thirteen EU member countries, over the period 1994-2001, controlling for individual and household characteristics and labour market characteristics (e.g., youth employment rate and share of temporary contracts).

Date: 2011-09-22
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Published in DEHEMS conference, Sep 2011, Vienne, Austria

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03245393

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