The Causal Effects of Education on Adaptability

W. Craig Riddell and Xueda Song ()

CLSSRN working papers from Vancouver School of Economics

Abstract: This study investigates the causal effects of education on individuals’ adaptability to employment shocks. Specifically, we assess the extent to which education influences re-employment success for unemployed workers. We also examine the impact of education on job search intensity, one potential mechanism through which education may increase the probability of re-employment following unemployment. Given that the positive correlation between education and adaptability is likely to be confounded by the endogeneity of education, we make use of data on compulsory schooling laws to create instrumental variables to assess the causal effects of education on adaptability. Based on data from the Canadian Census and the Labour Force Survey, we find that education both significantly improves re-employment opportunities and exerts significant positive impacts on job search intensity for the unemployed.

Keywords: Education; Human Capital; Adaptability; Displaced Workers; Unemployment; Job Search; Casual Effects; Compulsory Schooling Laws (search for similar items in EconPapers)
JEL-codes: I21 J64 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2009-02-16, Revised 2009-02-16
New Economics Papers: this item is included in nep-edu, nep-hrm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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