No Graduate Left Behind: Resource Configurations Enabling a Successful Labor Market Entry

Patricia Palffy, Luc Sandfort, Martin Schneider and Uschi Backes-Gellner

No 221, Economics of Education Working Paper Series from University of Zurich, Department of Business Administration (IBW)

Abstract: A successful transition of young people into the labor market is essential not only for individuals' future careers but also to tackle the shortage of skilled workers that firms are facing globally. While a large empirical literature has studied single determinants of a successful transition into the labor market, little is known about how different determinants interrelate and whether different determinants can complement each other or compensate for the non-existence of another. Drawing on conservation of resources theory and using a person-centered approach - fuzzy set qualitative comparative analysis (fsQCA) - we theoretically develop and empirically test a configurational approach to study the determinants of a successful labor market entry of young middle-skilled graduates. To test our configurational approach, we use a unique longitudinal dataset that merges comprehensive individual survey data of adolescents in an upper-secondary education and training program in Switzerland with administrative records on labor market outcomes within six years of graduation. The findings revealed that it is not single resources but a combination of human, personal, social capital and energy resources that determine a successful labor market entry of young people. Most importantly, the results showed that even when young individuals lack personal or parental resources, firms can offset these disadvantages by providing a positive apprentice-supervisor relationship to still ensure a successful labor market entry.

Pages: 43 pages
Date: 2024-06
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