The Effects of Macroeconomic Conditions on the Education and Employment Outcomes of Youth

30 Pages Posted: 23 Mar 2012

See all articles by Nicolas Herault

Nicolas Herault

University of Melbourne - Melbourne Institute: Applied Economic & Social Research

Weiping Kostenko

University of Melbourne - Melbourne Institute: Applied Economic & Social Research

Gary Marks

University of North Carolina at Chapel Hill, Political Science Department

Rezida Zakirova

Monash University, Department of Economics; Melbourne Institute

Date Written: October 13, 2010

Abstract

This paper examines the impact of macroeconomic conditions on the education and employment outcomes of youths in school-to-work transition. The dataset is based on five different cohorts from the Youth in Transition surveys (YIT) and the Longitudinal Surveys of Australian Youth (LSAY) and covers the period from 1985 to 2006, which is long enough to control explicitly for both poor and positive macroeconomic conditions. The multivariate analyses show that both the unemployment rates, and to a lesser extent economic growth rates, have an impact on youths' education and employment outcomes. Although the effects vary significantly by gender an education level, overall the results reveal that poor macroeconomic conditions tend to drive young people out of full-time work and into inactivity or part-time work. In addition, poor macroeconomic conditions tend to discourage further education. A result worth noticing is that males who did not complete secondary school suffer the largest increase in unemployment risks as the unemployment rate increases.

Suggested Citation

Herault, Nicolas and Kostenko, Weiping and Marks, Gary and Zakirova, Rezida, The Effects of Macroeconomic Conditions on the Education and Employment Outcomes of Youth (October 13, 2010). Melbourne Institute Working Paper No. 2/10, Available at SSRN: https://ssrn.com/abstract=1691444 or http://dx.doi.org/10.2139/ssrn.1691444

Nicolas Herault (Contact Author)

University of Melbourne - Melbourne Institute: Applied Economic & Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

HOME PAGE: http://www.findanexpert.unimelb.edu.au/researcher/person125238.html

Weiping Kostenko

University of Melbourne - Melbourne Institute: Applied Economic & Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

Gary Marks

University of North Carolina at Chapel Hill, Political Science Department ( email )

Chapel Hill, NC 27599
United States

Rezida Zakirova

Monash University, Department of Economics ( email )

Australia

Melbourne Institute ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia
+61383442183 (Phone)
+61383442111 (Fax)

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