The effect of education on unemployment duration of new entrants to the labor market

Document Type : Original Article

Authors
Saeid Eisazadeh 1
Hadi Naeini 2
Mohammad Javad Salehi 3
1 Associate Professor, Department of Economics, Faculty of Economics and Sciences, Bu-Ali Sina University, Hamedan, Iran
2 PhD Candidate of Financial Economics, Faculty of Economics and Social Sciences, Bu-Ali Sina University, Hamedan, Iran
3 Assistant Professor, Institute for Research and Planning in Higher Education, Tehran, Iran
10.61838/KMAN.IRPHE.30.2.3
Abstract
Nowadays, unemployment and particularly the unemployment of educated youth is one of the difficult problems of developing countries including Iran. Since unemployment is costly for households and society from an individual and social perspective and has long-term psychological destructive consequences; hence, understanding of unemployment duration and the factors affecting, can help policymakers in planning to reduce these costs. In this article, in order to evaluate the impact of education, including education levels and fields on unemployment duration of new entrants to the labor market, the common survival analysis models; That is, Kaplan-Meier estimator, Cox proportional hazards model and parametric models were used. The results showed that new entrants to the labor market in the major educational group of engineering, manufacturing and construction compared to the social sciences, journalism, and information; experimental sciences, mathematics and statistics as well as humanities and arts have lower probability of surviving unemployment. The unemployment duration of illiterate and new entrants to the labor market with upper secondary, lower secondary and primary education has been lower than new entrants with other educational levels. Also, we find that the unemployment duration of new entrants to the labor market increases with age.

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  • Receive Date 26 November 2022
  • Revise Date 02 July 2023
  • Accept Date 17 September 2023
  • Publish Date 21 June 2024