Academic and Labor Market Success: The Impact of Student Employment, Abilities, and Preferences

71 Pages Posted: 2 Mar 2009 Last revised: 30 Apr 2009

See all articles by Juanna Schrøter Joensen

Juanna Schrøter Joensen

University of Chicago; Institute for the Study of Labor (IZA)

Date Written: April 27, 2009

Abstract

This paper models the university-to-work transition in a stochastic dynamic environment, where students may study and work simultaneously. Student employment decisions depend on academic achievement, labor market opportunities, and expectations about the future. Estimation of the structural model using a unique panel data set with exogenous variation in study grant threshold levels reveals that some student employment has a positive impact on academic achievement, while too much has a negative impact. Abilities and preferences are important determinants of academic success. Students with higher academic abilities have significantly lower dropout rates, while students with higher consumption value of university attendance tend to have a higher probability of graduating, but spend longer time to graduation. These academic outcomes are not easily amendable by tilting study grants towards students who work less.

Keywords: Student Employment, Educational Investment, Grade Level Progression

JEL Classification: I21, I28, J24

Suggested Citation

Joensen, Juanna Schrøter, Academic and Labor Market Success: The Impact of Student Employment, Abilities, and Preferences (April 27, 2009). Available at SSRN: https://ssrn.com/abstract=1352077 or http://dx.doi.org/10.2139/ssrn.1352077

Juanna Schrøter Joensen (Contact Author)

University of Chicago ( email )

1101 East 58th Street
Chicago, IL 60637
United States

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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