Labor market prospects, search intensity and the transition from college to work

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 not stationary. 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 1 p... Mehr ...

Verfasser: van der Klaauw, Bas
van Vuuren, Aico
Berkhout, Peter
Dokumenttyp: doc-type:workingPaper
Erscheinungsdatum: 2005
Verlag/Hrsg.: Uppsala: Institute for Labour Market Policy Evaluation (IFAU)
Schlagwörter: ddc:330 / J64 / Job search behavior / structural model / Akademiker / Arbeitsuche / Bildungsertrag / Konjunktur / Schätzung / Niederlande / Berufseinstieg
Sprache: Englisch
Permalink: https://search.fid-benelux.de/Record/base-29231643
Datenquelle: BASE; Originalkatalog
Powered By: BASE
Link(s) : http://hdl.handle.net/10419/78639

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 not stationary. 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 1 percentage point decrease in unemployment rate increases wage offers on average with 3 percent and that there are substantial returns to work experience. Employment rates at graduation could be increased from 40 percent to 65 percent if alls students start job search 6 months prior to graduation.