Working while learning or learning while working aviad tur sinai dmitri romanov noam zussman
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Working While Learning or Learning While Working ? Aviad Tur-Sinai Dmitri Romanov Noam Zussman. March 11, 2008. Subject. Paper investigates empirically whether employment during academic study effects the duration of study and the likelihood of dropping out.

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Working while learning or learning while working aviad tur sinai dmitri romanov noam zussman

Working While Learning or Learning While Working ?Aviad Tur-SinaiDmitri RomanovNoam Zussman

March 11, 2008


Subject

Subject

  • Paper investigates empirically whether employment during academic study effects the duration of study and the likelihood of dropping out.

  • Takes advantage of a comperhensive individual-level dataset constructed from administrative files and records – of candidates, students, and recipients of bachelor’s degrees.


Main findings

Main Findings

  • The relationship between the extent of students’ employment and duration of their studies depends on their age:

    • Among students aged 22-26 at the beginning of their studies, the extent of employment has no effect on the duration of studies.

    • Among the older students there is a strong positiveeffect.


Motivation for study 1

Motivation for Study (1)

  • Employment is common among first-degree students who come from diverse socioeconomic backgrounds and pursue various academic diciplines. It has considerable implications for the students’ economic situation and on access to the higher-education system and their patterns of study.


Motivation for study 2

Motivation for Study (2)

  • Clashing conclusions via the literature:

    • Brunello and Winter-Ember (2003):

      Employment of students in Europe had no significant effect on the duration of study.

    • Ehrenberg and Sherman (1987):

      Employment of male students during the semester prolonged their degree studies and raised their dropout rates.


Motivation for study 3

Motivation for Study (3)

  • Solving an econometric problem:

    Endogeneity of the students’ employment (resulting from the positive correlation between unobserved personal characteristics: motivation, social connections...) when investigating the effect of employment on the duration of study.

    Usual IV doesn’t solve the problem of individual heterogeneity in employment and scholastic achievements(Ruhm, 1997; Light, 2001; Hakkinen, 2006).

    Therefore – we suggest a solution to solve the individual heterogeneity problem.


The data

The Data:

Administrative records of first-degree students at higher education institutions in Israel - who began their studies in the 1999/2000 academic year.


The data1

The Data:

Education

For each first-degree student (6 years follow-up):

  • Preferences for institutions.

  • Fields of study at the time of enrollment.

  • The progression of studies: institution(s), subjects completed.

  • Scholastic abilities.


The data2

The Data:

Employment and earning:

Matched employee-employer for the years

1999-2005 :

  • Number of months worked.

  • Annual gross earnings.

  • Tenure of employment with employer.


The data3

The Data:

Demographic data:

(source: administrative register of residents)

  • Sex

  • Date of Birth

  • Nationality/Religion

  • Country of birth

  • Date of immigration

  • Marital status

  • Number of children

  • Locality of residence

  • Identity of student’s parents

    Total population: 24,960 students.


Progression of studies

Progression of Studies


Proportion of students who received degree within 6 years from beginning of studies

Proportion of students who received degree within 6 years from beginning of studies

82.9%

78.9%

69.4%


Deviation of duration of degree studies from standard years

Deviation of duration of degree studies from standard years

years

3 years

4 years


Working while learning or learning while working aviad tur sinai dmitri romanov noam zussman

Proportion of first-degree recipients who began advanced degree studies immediately after first degree(by duration of first-degree studies)

%


Employment

Employment


Measuring rate of employment earnings

Measuring Rate of employment & Earnings

Rate of employment

  • A work load index.

  • Represented by the proportion of employee-wage months in the course of the year out of twelve months.

    Earnings

  • Annual earnings from all working places.

  • No. of months worked during the year.

    Therefore: we can derive the average monthly wage.


Employment rate of fisrt degree students

Employment Rate of Fisrt-Degree students

%


Employment rate of fisrt degree students1

Employment Rate of Fisrt-Degree students

%


Employment rate of fisrt degree students2

Employment Rate of Fisrt-Degree students

%

Time preparation for the bar exams


First degree students rate of employment 2004 1999

First-Degree Students rate of employment(2004-1999)


First degree students rate of employment 2004 19991

First-Degree Students rate of employment(2004-1999)


Mean annual months worked by first degree students by year of employment and major

Mean Annual Months Worked by First-Degree Students (by year of employment and Major)

months


Earnings

Earnings


Monthly earnings of first degree students nis current prices

Monthly Earnings of First-Degree Students(NIS, current prices)


Monthly earnings of first degree students nis current prices1

Monthly Earnings of First-Degree Students(NIS, current prices)


Monthly earnings of first degree students nis current prices2

Monthly Earnings of First-Degree Students(NIS, current prices)


Average monthly earnings of graduated first degree students nis current prices

Average monthly earnings of (graduated) first-degree students(NIS, current prices)


Average monthly earnings of graduated first degree students nis current prices1

Average monthly earnings of (graduated) first-degree students(NIS, current prices)


Average monthly earnings distribution of students who received degree within 6 years

Average monthly earnings distribution of students who received degree within 6 years

Students without prior employers

%


Average monthly earnings distribution of students who received degree within 6 years1

Average monthly earnings distribution of students who received degree within 6 years

Students without prior employers

%


Occupation

Occupation


Occupations of 20 29 age group by standing in academic studies year 2006

Occupations of 20-29 age group, by standing in academic studies (year 2006)

Source: Central Bureau of Statistics, Household Expenditure survey 2006, data processed by the authors.


Occupations of 20 29 age group by standing in academic studies year 20061

Occupations of 20-29 age group, by standing in academic studies (year 2006)

Source: Central Bureau of Statistics, Household Expenditure survey 2006, data processed by the authors.


Occupations of 20 29 age group by standing in academic studies year 2004

Occupations of 20-29 age group, by standing in academic studies (year 2004)

Source: Central Bureau of Statistics, Household Expenditure survey 2006, data processed by the authors.


Occupations of 20 29 age group by standing in academic studies year 20041

Occupations of 20-29 age group, by standing in academic studies (year 2004)

Source: Central Bureau of Statistics, Household Expenditure survey 2006, data processed by the authors.


Econometric model results

Econometric Model&Results


The aim

The aim:

Estimating the correlation of employment during study and patterns of study (duration of study, likelihood of dropping out, likelihood of going on to advanced studies).


The econometric difficulty

The econometric difficulty

The need to contend with unobserved heterogeneity in the traits of those who choose to work and the others, traits that correspond both on the decision to work and the likelihood of scholastic success (scholastic abilities, diligence, motivation, etc.).


Working while learning or learning while working aviad tur sinai dmitri romanov noam zussman

Let assume:

- Duration of study

Described by the following model:

(1)

An array of exogenous controlling variables (sex, ages, ethnic origin, scholastic ability, …)

Employment during studies

Unobserved personal traits

"white noise"


Working while learning or learning while working aviad tur sinai dmitri romanov noam zussman

(2)

where:

Unobserved personal traits that affect labor supply (social connections, job-hunting ability, etc.)

An array of variables associated with employment but not with duration of studies

"white noise"


However

However…

A positive correlation between and causes the unobserved-heterogeneity problem – which makes the employment variable in eq.(1) endogenous.

Therefore…

Using the Instrumental Variable Method as correlated with employment during study and not correlated with the variables which influence the likelihood of scholastic success.


What kind of instrument variable

What kind of Instrument Variable ?

First Suggestion

The regional unemployment rate during the term of studies (Ruhm, 1997; Light, 2001; Hakkinen, 2006).

Second suggestion

A predetermined variable: employment in 1999

Explanation: reflects the individual’s propensity to labor and should not be correlated with the duration of first-degree studies.


Estimates of controlling variables

Estimates of Controlling Variables


Effect of students employment on standard deviation of years of study until award of first degree

Effect of students’ employment on standard deviation of years of study until award of first degree

Effect of students’ employment

Year of study

denote 10%, 5% and 1% significance, respectivety. ***,**, *


Effect of students employment on standard deviation of years of study until award of first degree1

Effect of students’ employment on standard deviation of years of study until award of first degree

Effect of students’ employment

Year of study

denote 10%, 5% and 1% significance, respectivety. ***,**, *


Effect of students employment on standard deviation of years of study until award of first degree2

Effect of students’ employment on standard deviation of years of study until award of first degree

Effect of students’ employment

Year of study

denote 10%, 5% and 1% significance, respectivety. ***,**, *


Working while learning or learning while working aviad tur sinai dmitri romanov noam zussman

Effect of students’ employment on standard deviation of years of study until award of first degreeAge 22-26 (in 2000) vs. All students

denote 10%, 5% and 1% significance, respectivety. ***,**, *


Working while learning or learning while working aviad tur sinai dmitri romanov noam zussman

Effect of students’ employment on standard deviation of years of study until award of first degreeAge 22-26 (in 2000) vs. All students

denote 10%, 5% and 1% significance, respectivety. ***,**, *


Effect of students employment on likelihood of

Effect of students’ employment on likelihood of …


Effect of students employment on likelihood of1

Effect of students’ employment on likelihood of …


Effect of students employment on likelihood of2

Effect of students’ employment on likelihood of …


Effect of students employment on likelihood of3

Effect of students’ employment on likelihood of …


Effect of students employment on likelihood of4

Effect of students’ employment on likelihood of …


Conclusions

Conclusions

In Israel, 52 percent of first-degree students work during their first year of studies, as do 64 percent of those in their third year.

During their three years of studies, the Israeli students’ average earnings climb from 46 percent of the national average wage to 57 percent.


Conclusions cont

Conclusions – Cont.

Among students aged 22-26 at the beginning of their studies, the extent of employment has no effect on the duration of studies. It means that for then: learning are prior for working.

Among olderstudents at the beginning of their studies, the extent of employment has a positive effect on the duration of studies. It means that for then: workingare prior for learning.


Thank you

Thank you


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