Does more general education reduce the risk of future unemployment? Evidence from an expansion of vocational upper secondary education

Häll, Caroline

doi:10.1016/j.econedurev.2016.03.005

Cited by 54 publications

(44 citation statements)

References 21 publications

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“…Second, those who have higher education will be more independent and easier to creating employment. This result is different from Hall (2016) that concludes no evidence having attended a longer education will reduce the risk of experiencing unemployment.…”

Section: Selection Of the Best Modelcontrasting

confidence: 87%

The Determinant of Regional Unemployment in Indonesia: The Spatial Durbin Models

2019

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Unemployment is a problem that occurs in many countries and often gets special attention both from policymakers and academics. This fact is because if not addressed, it will cause socio-economic problems in the country. Therefore it is necessary to formulate the causes of unemployment by involving spatial aspects to avoid biased and inefficient estimates. This study aims to find the determinants of unemployment rates in Indonesia, including calculating the direct and indirect effect of using the spatial Durbin models (SDM) in the period [2000][2001][2002][2003][2004][2005][2006][2007][2008][2009][2010][2011][2012][2013][2014][2015][2016][2017]. The results of this study indicate that the overall independent variables used significantly influence the unemployment rate in Indonesia. Besides, it turns out that the higher education variable completed by the population of a region has the most significant impact both in decreasing unemployment in a region and neighboring regions. Therefore, the policy taken should pay attention to this. Keywords: regional unemployment, spatial durbin model, direct and indirect effect AbstrakPengangguran merupakan suatu permasalahan yang banyak terjadi di berbagai negara dan sering menjadi perhatian bagi akademisi maupun pengambil kebijakan. Karena jika tidak diatasi, hal ini akan menyebabkan masalah sosial ekonomi di negara tersebut. Oleh karena itu perlu dirumuskan penyebab pengangguran dengan melibatkan aspek spasial untuk menghindari estimasi yang bias dan tidak efisien. Penelitian ini bertujuan untuk mengetahui determinan dari tingkat pengangguran di Indonesia termasuk menghitung dampak langsung dan dampak tidak langsung dengan menggunakan model spasial durbin (SDM) pada periode tahun 2000-2017. Hasil penelitian ini menunjukkan bahwa keseluruhan variabel bebas yang digunakan signifikan berpengaruh terhadap tingkat pengangguran di Indonesia. Selain itu ternyata variabel pendidikan tinggi yang di tamatkan oleh penduduk suatu wilayah memiliki dampak terbesar dalam penurunan tingkat pengangguran baik di suatu wilayah maupun di wilayah tetangganya. Oleh karena itu, kebijakan yang diambil sebaiknya memperhatikan hal tersebut.Kata Kunci: pengangguran regional, model spasial durbin, efek langsung dan tidak langsung JEL Code: C21, J64, R12

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Section: Selection Of the Best Modelcontrasting

confidence: 87%

The Determinant of Regional Unemployment in Indonesia: The Spatial Durbin Models

2019

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“…Zilic (2018) studies the effect of a high school reform in Croatia in the mid-1970s that reduced tracking in high school by forcing all students to attend two years of general curriculum before entering a vocational school; using a regression discontinuity design, he finds that the reform reduced high school and university completion rates among males but had no adverse effects on females. Finally, Hall (2012Hall ( , 2016 studies the pilot phase of a major education reform conducted in Sweden in 1991 that increased the academic content of the vocational tracks in upper secondary and gave students graduating from these vocational tracks basic eligibility for university studies. Focusing on students that start in the vocational track and exploiting variation in exposure to the pilot scheme across municipalities, Hall (2012) finds that the reform increased the number of years of completed upper secondary schooling among these students, but did not impact their college outcomes or earnings; furthermore, she finds that the reform increased the probability of dropping out of high school among students with low compulsory school GPAs.…”

Section: Introductionmentioning

confidence: 99%

“…Focusing on students that start in the vocational track and exploiting variation in exposure to the pilot scheme across municipalities, Hall (2012) finds that the reform increased the number of years of completed upper secondary schooling among these students, but did not impact their college outcomes or earnings; furthermore, she finds that the reform increased the probability of dropping out of high school among students with low compulsory school GPAs. Furthermore, Hall (2016) shows that while the reform overall reduced the risk of experiencing unemployment for vocational students, it increased that risk among students with low GPAs (likely due to their higher drop out rates).…”

Section: Introductionmentioning

confidence: 99%

Improving Educational Pathways to Social Mobility: Evidence from Norway’s “Reform 94”

Bertrand¹,

Mogstad²,

Mountjoy³

2019

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High school vocational education has a controversial history in the United States, largely due to a perceived tradeoff between teaching readily deployable occupational skills versus shunting mostly disadvantaged students away from the educational and career flexibility afforded by general academic courses. We study the effects of a nationwide high school reform in Norway that aimed to move beyond this tradeoff. Reform 94, implemented in one step in the fall of 1994, integrated more general education into the vocational track, offered vocational students a pathway to college through a supplementary semester of academic courses, and sought to improve the quality of the vocational track through greater access to apprenticeships. We identify the impacts of the reform through a difference-indiscontinuity research design, comparing students born just before and after the reform's birthdate eligibility cutoff to students born around the same cutoff in placebo years. Linking multiple administrative registries covering the entire Norwegian population, we find that the reform substantially increased initial enrollment in the vocational track, but with different subsequent outcomes for different groups. More men complete the vocational track at the expense of academic diplomas, but this has no detectable impact on college-going and leads to reduced criminal activity and higher earnings in adulthood, especially among disadvantaged men. For disadvantaged women, the initial surge in vocational enrollment leads to fewer high school dropouts and more vocational degrees with the college-prep supplement, and hence an increase in the share of college-eligible women; however, this translates into only small and insignificant increases in college completion and adult earnings. We show that men overwhelmingly pursue vocational education in higher-paying skilled trade fields, while women almost exclusively pursue vocational education in lower-paying service-based fields, which helps in interpreting some of these results. Overall, the reform succeeded at improving social mobility, particularly among men, but it somewhat exacerbated the gender gap in adult earnings.

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“…Apart from output fluctuations as one of the main drivers of unemployment dynamics, recent studies have also pointed to a variety of other conditions that influence the level and composition of unemployment: intersectoral and interregional labour reallocations (Garonna & Sica, 2000), labour mobility (Mitra & Ranjan, 2010), sectoral composition of economic activity (Ezcurra, 2011), general education (Hall, 2016), specialized skills (Ortego-Marti, 2017), unemployment benefits (Zhang, 2017), government purchases (Holden & Sparrman, 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

Unemployment and Sectoral Competitiveness in Southern European Union Countries. Facts and Policy Implications

Dimian

Aceleanu

Ileanu

et al. 2018

Journal of Business Economics and Management

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This article addresses the problem of the main factors driving sectoral unemployment in the Mediterranean countries most affected by this phenomenon. The choice of the four countries (Greece, Italy, Spain and Portugal) relies on the fact that they are dealing with the highest unemployment rates in the European Union and a certain typology of the economic structure. The originality of our research is offered by its direction, less tackled until now, namely the focus on the particularities of the economic sectors, trying to capture differences between them. The importance and the impact of the results are supported by the methods used to produce them, indicators and econometric models that are on trend and bring extra information to available studies. Descriptive statistics and mismatch indexes are used to outline the economic and labour market structure, while the econometric models built on panel data capture the impact of factors such as GVA growth, specialization and labour market mismatches on the unemployment rate at six economic sectors level. Our paper makes three contributions to the literature. First, we have demonstrated that agriculture is the sector of activity less sensitive to output fluctuations in terms of unemployment and can become a buffer for the jobless in times of recessions. Second, we have proved that industry, as a whole, is highly responsive to economic developments and bad specialization could worsen unemployment situation in this sector. Third, we showed that educational mismatches have a significant impact on unemployment in those sectors of activity that employ low educated workforce.

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Does more general education reduce the risk of future unemployment? Evidence from an expansion of vocational upper secondary education

Cited by 54 publications

References 21 publications

The Determinant of Regional Unemployment in Indonesia: The Spatial Durbin Models

The Determinant of Regional Unemployment in Indonesia: The Spatial Durbin Models

Improving Educational Pathways to Social Mobility: Evidence from Norway’s “Reform 94”

Unemployment and Sectoral Competitiveness in Southern European Union Countries. Facts and Policy Implications

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