Purpose Youth unemployment is one of the major problems that the economic systems face. Given this issue, the purpose of this paper is to assess whether school-to-work transition is easier for individuals with secondary vocational education compared to general secondary education. The authors want to explore which vocational systems across Europe produce better effects. Design/methodology/approach The authors use data from a module on “Entry of young people into the labour market” from the 2009 and 2014 European Labour Survey and they estimate multinomial probit models, allowing for violation of the irrelevance of the alternative assumption. Findings The authors find that in countries with the dual vocational system, vocational education improves employability both in the short and medium run, whereas in countries with a school-based vocational system, results are mixed and, only in some cases, the effect of vocational studies is significantly positive. Research limitations/implications Sample size for short-run analysis is a bit small in a few countries (Austria and Germany). Moreover, even if the authors have reason to believe that the methods adopted are mitigating the omitted heterogeneity issues and robustness checks are run on these aspects, these issues cannot be fully excluded. Practical implications The authors provide policy implications, showing that dual vocational systems can improve school-to-work transitions and that vocational structure is particularly effective in this case. Social implications The authors provide information on which education model may offer better chance in terms of labour outcomes. Originality/value Given the relevance of youth unemployment, the authors provide valuable information on how to mitigate this problem. The use of cross-country comparisons offers great insights on which vocational systems appear to be well-suited to enhance employability.
We examine how unemployment schemes and liquidity constraints affect re-employment probabilities trying to assess whether these schemes, through employment services and search requirements, can offset the perverse effect of benefits on unemployment duration. Similarly, given that liquidity constraints and financial pressure also affect reservation wage and search effort, we analyze whether better economic conditions of individuals increase duration. We perform a survival analysis on Finland, Italy and Poland and we find that unemployment insurance schemes have a mixed effect: initially they give incentives to increase search effort but with time they simply reduce liquidity constraints and thus increase duration. We also find that individuals’ liquidity constraints reduce unemployment duration in Italy and Poland but not Finland, suggesting that this aspect is less important in countries with a more developed welfare system
There is a consolidated empirical literature providing evidence of the fact that financial literacy, human capital, savings and stock market participation are interconnected decisions. However, to the best of our knowledge, a theoretical explanation of such connections is missing. In this paper we aim at filling this gap, by building a framework that includes all these decisions in an encompassing model. The results of our model provide a theoretical foundation for the role and the determinants of financial literacy and are able to explain several stylized facts on literacy and stock market participation. JEL Classification: D14, D18, D91, J24
In this paper, we study the factors affecting the decision of farmers to directly sell their products to consumers using micro-data on the entire farm population in Italy The empirical setting of the analysis reflects our focus on the geographic determinants of farmers' choices as we estimate our model adopting a multi-level approach and including also spatially lagged variables. The results support the idea that the diffusion of direct sale is a localised process of social innovation, based on knowledge sharing among actors. Policy design should consider the nature of this process in supporting more sustainable forms of supply chain.
This article studies the evolution of the wage differentials between graduate (skilled) and non-graduate (unskilled) workers in several European countries from the beginning of the 1990s to the beginning of this century. The starting point is that all European countries show a common increase in the relative supply of skilled workers but different evolution of wage differentials. Economics theory usually relates the evolution of wage differentials not only to relative supply but also to skill-biased technological progress. I complement this explanation providing a theoretical model of wage bargaining where wage differentials are determined also by labour market institutions. My empirical findings show that both technological progress and labour market institutions are important in the determination of wage differentials. As for the former, I find that differentials depend on the pace and intensity at which technological progress takes place. As for labour market institutions, their effect, though important, is not always straightforward. In fact, some aspects of institutions, like minimum wage and the duration of unemployment benefits, favour unskilled workers while other aspects, like bargaining power and replacement rates from unemployment benefits, may magnify the differences in outside options and actually increase wage differentials
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