Search Results

We examine the determinants of labour market status after the International Standard Classification of Education (ISCED) by use of unique linked register data on students, their parents, teachers, educational organisations and business companies in Finland. We distinguish between four outcomes: (1) employment; (2) further studies; (3) non-employment; and (4) drop-out. The explanatory factors are classified into the characteristics of three main groups: (1) educational organisations and their institutions; (2) students; and(3) local business conditions. Teaching expenditures do not matter but teachers’ skills do. Parental background plays a central role. Local business development matters for boys.

Published abstract. Show less

This paper investigates the rates of return and the risks of different types of educational paths after compulsory education. We distinguish a purely academic educational path from a purely vocational path and a mixed path with loops through both systems. To study the labour market outcome we compare earnings and calculate net return rates as well as risk measures to investigate whether different educational paths are characterised by different risk-return trade-offs. We use Lazear’s jack-of-all-trades theory on entrepreneurship to derive testable predictions about the labour market outcome of different combinations of education for entrepreneurs and employees. Our empirical results are based on the Swiss Labor Force Survey (SLFS) and demonstrate that mixed educational paths are well rewarded in the labour market. However, a high return is also associated with a high income variance which is driven by those who end up as entrepreneurs.

Published abstract. Show less