Labor Market Prospects, Search Intensity and the Transition from College to Work

Bas van der Klaauw, Aico van Vuuren and Peter Berkhout ()
Additional contact information
Peter Berkhout: RIGO Research Institute

No 1176, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper we develop a structural model for job search behavior of students entering the labor market. The model includes endogenous search effort and on-the-job search. Since students usually do not start a regular job before graduation but start job search 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 starts 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 percent point decrease in unemployment rate increases wage offers with 3 percent, 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 percent to 65 percent if all individuals start job search 6 month prior to graduation.

Keywords: return to work experience; business cycle; structural estimation (search for similar items in EconPapers)
JEL-codes: C41 I20 J64 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2004-06
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (12)

Published - published in: European Economic Review, 2010, 54 (2), 294-316

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https://docs.iza.org/dp1176.pdf (application/pdf)

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