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Country Patterns of Labour Market Entry and Early Career

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Title: Country Patterns of Labour Market Entry and Early Career


1
Country Patterns of Labour Market Entry and Early
Career
  • Péter Róbert
  • TARKI Social Research Institute,
  • Budapest, Hungary
  • Paper prepared for the DECOWE Conference,
    Ljubljana, 24-26 September 2009

2
Outline of the presentation
  • Research ambition and questions
  • Conceptual background and hypotheses
  • Data issues REFLEX and HEGESCO
  • Construction of the measurements
  • Methodology
  • Results on country patterns
  • Discussion and policy relevance

3
Research objective LM entry and early career
  • Easiness and fastness of LM entry
  • - length of job search
  • Match between education and current job
  • - over-education, underemployment
  • - performance gap / credential gap
  • - objective / subjective approach
  • Early career
  • - unemployment experience

4
Conceptual backgroundOLM / ILM and EPL
  • Internal vs. occupational markets production vs.
    training approach organisational vs.
    qualificational mobility space
  • - tracking in the school system, vocational
    specificity, signalling function
  • Employment protection legislation
  • - insider vs. outsider labour market

5
HypothesesThe effects of OLM / ILM and EPL
  • LM entry is easier and faster under the
    conditions of OLM due to better signaling
    function
  • Better match between qualifications and jobs
    under OLM as the study program is more vocational
    oriented
  • Stronger EPL makes LM entry more difficult as
    insiders are better protected
  • Weaker EPL increases the risk of mobility out of
    first job including the risk of unemployment

6
Data REFLEX and HEGESCO
  • REFLEX
  • Fielded in 2005
  • Covers graduates 5 years after completing
    university in 1999 /2000
  • Countries Austria, France, Belgium, Germany, UK,
    Netherlands, Norway, Finland, Portugal, Spain,
    Italy, Estonia, Czech Rep.
  • HEGESCO
  • Fielded in 2008 / 2009
  • Covers graduates 5 years after completing
    university in 2002 /2003
  • Countries Slovenia, Poland, Lithuania, Hungary,
    Turkey
  • Identical questionnaire, same topics

7
Countries Predicted typology
8
Dimensions and indicators
  • Labour market entry
  • - Job search lasted longer than 6 months
  • Match between qualification and current job
  • - Working in a job that does not require diploma
    (based on ISCO title)
  • - Feels that working in a job that requires a
    level of schooling below tertiary education
  • - Feels that his/her skills are underutilized in
    current job
  • Early career
  • - Experienced unemployment at least one time

9
Methodology Cluster analysis
  • An explorative technique to display country
    patterns based on typical combination of
    characteristics ( input indicators see above)
  • Analysis is performed on country level data (N
    18)
  • Dendogram the process how countries that are
    more similar (closer to each other) are grouped
    together
  • Selected cluster solution countries are grouped
    and characterized by the indicators that served
    as input variables for the method

10
Dendogram from cluster analysis

11
Cluster solution Cluster 1
12
Cluster solution Cluster 2
13
Cluster solution Cluster 3-4
14
Discussion Limitations
  • Selection effect only those analyzed who entered
    the labour market
  • Conceptual background has been developed and
    tested earlier for the entire population of LM
    entrants and not only for graduates
  • Indicators were carefully selected but a wider
    range of them can only be applied if dimensions
    analyzed separately

15
Discussion Lessons
  • Returns to human capital are not homogeneous in
    the various societies, institutional differences
    reshape labour market entry and early career of
    graduates
  • OLM / ILM and EPL turned out to be relevant for a
    large number of countries in the case of several
    indicators
  • Country differences are not solely along the
    lines of former political regimes
  • - the major added value of the HEGESCO project is
    that including further new EU member states makes
    clear the existing variation among them
  • - similarly large distance between Estonia and
    Hungary, and Norway and Spain.

16
Discussion Policy implications
  • Governments
  • - Further increase of internationalizing the
    national higher education system in terms of
    study programs, methods, international contacts
    is crucial requirement
  • Employers
  • - Collecting more information about study
    programs ? Increasing the signaling function of
    education despite of the expansion at tertiary
    level ? Decrease of underemployment
  • Universities
  • - Strengthening professional expertise with
    practical orientation
  • - Increasing collaboration with employers ?
    better signaling function of education ? helping
    decreasing search costs of employers and making
    easier the LM entry for the students

17
Thank you!
  • Péter Róbert
  • TARKI Social Research Institute
  • Budaorsi ut 45
  • 1112. Budapest, Hungary
  • E-mail robert_at_tarki.hu
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