Luxembourg Employment Study Working Paper no. 15, 1999

[co-author Miguel Portela]

Abstract   During the last decades, major changes have occurred in youth labour markets and it has become harder for young people who have finished their secondary education to find a job. This study aims at identifying the factors behind individuals' decisions in their transition from high school, in Spain and in the United Kingdom. To do so, we have modelled a bivariate probit to the choices of studying and working. The propensity for unemployment and the educational level of the reference person in the household are the major factors that influence these decisions.

Keywords: Transition from school, bivariate probit, youth unemployment, Spain, United Kingdom

JEL-code: C25, I20, J20

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