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Youth unemployment and labour market transitions in Hungary

Lookup NU author(s): Professor Peter Dolton

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Abstract

Unemployment and labour market adjustment have featured prominently in the problems of transitional economics. However, the position of young people and their transitions from school to work in these new market economies has been virtually ignored. This paper examines a new large longitudinal data set relating to young people in Hungary over the period 1994-98. Using data on each individual's labour market state over 4 years we estimate a panel econometric model that explicitly allows for duration dependence and individual unobserved heterogeneity to capture the diversity of initial conditions faced by these young people in the labour market. In modelling the education and employment decisions in the transition from school to work we find strong evidence of the importance of individuals making good initial career decisions and an enduring effect of academic achievement on labour market and education outcomes. © 2005 Taylor & Francis Group Ltd.

Publication metadata

Author(s): Audas R, Berde E, Dolton P

Publication type: Article

Publication status: Published

Journal: Education Economics

Year: 2005

Volume: 13

Issue: 1

Pages: 1-25

Print publication date: 01/03/2005

ISSN (print): 0964-5292

ISSN (electronic): 1469-5782

Publisher: Routledge

URL: http://dx.doi.org/10.1080/0964529042000325180

DOI: 10.1080/0964529042000325180

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