Field of Study and Transition into a Stable Job: The Case of a University in Southern Italy

Abstract

In this paper, we investigate the relationship between a graduate's field of study and probability of finding a stable job in a labor market which is flexible as regards atypical jobs but highly protective regarding stable jobs. We apply a discrete-time hazard model, taking into account unobservable heterogeneity, to analyze the transition to a stable job of students who graduated from the University of Calabria in 2004, at one, three and five years distance. Main findings indicate that, after controlling for a wide range of characteristics, Engineering graduates have a higher probability of finding a stable job than graduates in Economics and Business followed by those with a degree in Sciences, Political Science, and Humanities. These results confirm that, even in a deprived area, investing in occupational specific human capital can be seen as an "insurance" against the risk of unemployment or an unstable job.

Does it pay off to specialize? The interplay between educational specificity, level and cyclical sensitivity

“…Graduates from those fields require less on-the-job training when employed and are more productive than graduates from fields that do not provide these productive skills. These reduced training costs and higher productivity make graduates from these fields more attractive for employers (Lombardo et al 2012;Middeldorp et al, 2019). Graduates from more specific fields of study are preferred by employers for jobs in which these specific skills increase productivity the most.…”

“…During an economic upturn, specificity always pays off. Irrespective of cyclical sensitivity, graduates from more specific fields of study are more likely to have higher levels of employment security in their school-to-work transition: they find employment in a matching occupation quickly, as they are preferred by employers and are less likely to be screened with a temporary contract as employers have more certainty about their productivity (Giesecke and Schindler 2008;Lombardo et al, 2012). They also have higher levels of income security in their school-to-work transition as they are more likely to earn higher wages due to higher productivity in their matching occupations (Webber 2014) and, as a consequence of their higher employment security, also have more income stability.…”