To Study or to Work? Education and Labour Market Participation of Young People in Poland

Francesco Pastore

No 1793, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper proposes Heckprobit estimates of the determinants of labour market participation of a sample of young (15-30) Poles, controlling for the sample selection bias caused by excluding those in education. There is evidence of sample selection bias in the case of young men, suggesting that they obey more than women to economic factors in making their educational choices. Education is an important determinant of the success in the labour market. The instrumental variables used in the selection equation – the local unemployment rate, expected lifetime earnings and the opportunity cost of education – have a statistically significant impact on the probability to be in education. In contrast with several previous studies relative to mature market economies, in high unemployment voivodships young people prefer to seek a job, rather than studying. In turn, this contributes to make regional unemployment persistent.

Keywords: youth unemployment; education; heckprobit; Lisbon strategy; Poland (search for similar items in EconPapers)
JEL-codes: C35 I2 J24 P3 P52 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2005-10
New Economics Papers: this item is included in nep-edu, nep-eec, nep-lab and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Published - published in: Eastern European Economics, 2012, 50 (3), 49-78

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