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

See all articles by Dmitri Romanov

Dmitri Romanov

Government of the State of Israel - Israel Central Bureau of Statistics

Aviad Tur-Sinai

Max Stern Academic College of Emek Yezreel; Hebrew University of Jerusalem; University of Rochester - School of Nursing

Noam Zussman

Bank of Israel

Date Written: March 10, 2010

Abstract

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

Romanov, Dmitri and Tur-Sinai, Aviad and Zussman, Noam, The True Effect of Students’ Employment on the Duration of Studies (March 10, 2010). Applied Economics, 2017, 49(33): 3328-3340. DOI: 10.1080/00036846.2016.1259749. Available at SSRN: https://ssrn.com/abstract=1568163 or http://dx.doi.org/10.2139/ssrn.1568163

Dmitri Romanov

Government of the State of Israel - Israel Central Bureau of Statistics ( email )

Israel

Aviad Tur-Sinai (Contact Author)

Max Stern Academic College of Emek Yezreel ( email )

Emek Yezreel, 19300
Yezreel 19300
Israel

Hebrew University of Jerusalem ( email )

Mount Scopus
Jerusalem, IL Jerusalem 91905
Israel

University of Rochester - School of Nursing ( email )

Helen Wood Hall
601 Elmwood Ave
Rochester, NY 14642
United States

Noam Zussman

Bank of Israel ( email )

P.O. Box 780
Jerusalem, 91907
Israel

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