The true effect of students’ employment on the duration of studies |
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Authors: | Aviad Tur-Sinai Dmitri Romanov Noam Zussman |
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Institution: | 1. Department of Economics and Management, The Max Stern Yezreel Valley College, Yezreel Valley, Israel;2. Chief Scientist Department, Israel Central Bureau of Statistics, Jerusalem, Israel;3. The Bank of Israel, Jerusalem, Israel |
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Abstract: | We examine the effect of the first-degree students’ employment on the prolongation of their studies. When employing a popular instrumental variable, the regional unemployment rate, we find a negative impact of students’ employment on duration of studies. Then, adding a predetermined IV – the individual’s employment prior to the beginning of academic studies – turns the estimate positive. Furthermore, we find that the relationship between the extent of students’ employment and duration of their studies depends on their age: among the younger students (aged 22–26), the extent of employment has no effect on the duration of studies, while among the older students, the effect is positive and statistically significant. |
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Keywords: | Earnings undergraduate studies instrumental variable employment |
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