Introducing Time-to-Educate in a Job Search Model

Sascha Becker

No 1801, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Transition patterns from school to work differ considerably across OECD countries. Some countries exhibit high youth unemployment rates, which can be considered an indicator of the difficulty facing young people trying to integrate into the labor market. At the same time, education is a time-consuming process, and enrolment and dropout decisions depend on expected duration of studies, as well as on job prospects with and without completed degrees. One way to model entry into the labor market is by means of job search models, where the job arrival hazard is a key parameter in capturing the ease or difficulty in finding a job. Standard models of job search and education assume that skills can be upgraded instantaneously (and mostly in the form of on-the-job training) at a fixed cost. This paper models education as a time-consuming process, a concept which we call time-to-educate, during which an individual faces the trade-off between continuing education and taking up a job.

Keywords: job search; education; enrollment; dropouts (search for similar items in EconPapers)
JEL-codes: E24 J31 J41 J64 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2005-10
New Economics Papers: this item is included in nep-dge, nep-edu, nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - published in: Bulletin of Economic Research, 2006, 58 (1), 61–72

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Related works:
Journal Article: Introducing Time‐to‐Educate in a Job‐Search Model (2006)
Working Paper: Introducing Time-to-Educate in a Job Search Model (2005)
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