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High schools students’ summer jobs and their ensuing labour market achievement

High schools students’ summer jobs and their ensuing labour market achievement. Institute for Labour Market Policy Evaluation, Sweden, 2006 Iris J Y Wang, Kenneth Carling, Ola Nääs http://www.ifau.se/upload/pdf/se/2006/wp06-14.pdf. Irina Trunova and Valeriya Lopina

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High schools students’ summer jobs and their ensuing labour market achievement

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  1. High schools students’ summer jobs and their ensuing labour market achievement Institute for Labour Market Policy Evaluation, Sweden, 2006 Iris J Y Wang, Kenneth Carling, Ola Nääs http://www.ifau.se/upload/pdf/se/2006/wp06-14.pdf Irina Trunova and Valeriya Lopina Central European University May 27, 2010

  2. Summer jobs are beneficial - they complement in-class education - they offer hints what to study and motivate - financial help - establishing a social network • Negative consequences of summer jobs • They may make students exhausted for the new semester • Too easy money, no interest to study

  3. Quasi-experimental data • Mid-size town of Falun, Sweden, 1995 – 2002 annually (except 1996) • Lottery: providing summer jobs to high school applicants • Average participation over the years • 2,700 students enrolled in high schools in Falun • 800 students apply for municipal jobs • 200 summer jobs are offered on a lottery basis

  4. Number of students enrolled in high schools in Falun 3-week summer jobs in the municipality • Care of elderly people • Cleaning jobs • In 2002 teaching positions at the upper elementary schools(but just a few) Payment • 42 and 52 SEK (€ 4-5) per hour depending on age • 60 SEK (€ 6) per hour for tutors

  5. Age distribution of applicants • Uniform until 1998, then shift to the left in the centre of distribution The age distribution of applicants

  6. Summer job ratios • Almost 100% of offers are accepted by the applicants • 60% denied applicants managed to find a summer job • The proportion of summer jobs if higher for older students Young students (16-17 years) Old students (18-19 years)

  7. The median annual earnings for summer jobbers in SEK and deflated by CPI • Non-applicants earn more than applicants • They may have stronger abilities • They may be better informed

  8. Median annual earnings • Difference between applicant and non-applicant is small • Advantage of municipal jobs relative to private ones in 2001 • Difference between applicant and non-applicant is high (heterogeneity in skills) Young students (16-17 years) Old students (18-19 years)

  9. Data set • 4,810 applications in total • 3,197 applicants (after excluding students who applied several times) Was the lottery fair? • 6-month difference in age betweentreatment and control groups • No significant difference in grades • Puzzling gender difference Belief that the lottery was fair

  10. A comparison of background variables for the applicants with and without an offer of asummer job • The proportion of males • The student’s lower secondary grade, as a percentile rank

  11. Intention-to-treat analysis (ITT) “Analyze as randomized!” (Dallal, 2004) • Treatment group: who were offered the jobs • Control group: not offered by municipality • On-treatment analysis (OT) • Treatment group: who were offered the jobs and who were not but found them • Control group: who rejected the job offers and who were not offered and failed to find jobs

  12. The effect of summer jobs • ITT = α1 – α2 • OT = β1 – β2 • Median of labour market earnings of the applicants • who were offered the job at the municipality (α1) • who were not offered the job (α2) • with a summer job (β1) • without a summer job (β2) Corresponding numbers of students are Nα1,Nα2, Nβ1, Nβ2

  13. Results (1) • The effect of summer jobs on median earnings for high school students after graduation at the age of 19 years.

  14. Results (2) • The effect of offer: Wit – the earnings of the ith student t years after graduation Oi equals one if the student was offered a summer job and zero otherwise χ includes all the significant background variables (gender, age, log of family earnings) α1t and α2t – the parameters of interest which show the effect of the offer on the log earnings

  15. Result (3) • The effect of a summer job: SJi equals one if student i have had a summer job Other parameters are similar to those in model of job offer

  16. Results (4) • The effect of an offer and a summer job on the log-earnings for high school students after graduation.

  17. Results (5) • Positive summer job effect • The effect vanishes quickly • From OT analysis no effect for all students (might be due to selection bias)

  18. Concluding discussion • Short-term advantage via early labour market contacts • No effect on student’s productivity • Other pattern in the US

  19. Do we believe the results? • Yes because of randomization • But we cannot extend these findings • to other kinds of jobs which require other skills • all students • countries with different labour market structure

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