The True Effect of Students’ Employment on the Duration of Studies
Applied Economics, 2017, 49(33): 3328-3340. DOI: 10.1080/00036846.2016.1259749
29 Pages Posted: 12 Mar 2010 Last revised: 7 Aug 2018
Date Written: March 10, 2010
We examine the effect of the first-degree students' employment on the prolongation of their studies. When employing a popular instrumental variable, the regional unemployment rate, we find a negative impact of students' employment on duration of studies. Then, adding a predetermined IV - the individual's employment prior to the beginning of academic studies - turns the estimate positive. Furthermore, we find that the relationship between the extent of students’ employment and duration of their studies depends on their age: among the younger students (aged 22-26), the extent of employment has no effect on the duration of studies, while among the older students the effect is positive and statistically significant.
Keywords: earnings, undergraduate studies, instrumental variable
JEL Classification: I21, J22
Suggested Citation: Suggested Citation