AIAS Lunch Seminar 11 juni Stephen Bazen - Aix-Marseille School of Economics (GREQAM)

‘The young are not forever young: the assimilation of young persons in the labour market in France" (joint with K. Maman Waziri)’

Stephen Bazen

Day: Thursday 11 June 2015
Time: 12.15 – 13.15 hrs.
Location: AIAS, 4th floor Gijsbert van Tienhoven building, room 4.09, Roeterstraat 31, 1018 WB (NEW LOCATION!)
Registration: Please send an email, preferably before Wednesday 10 June, 12.00 hrs. to register.
A sandwich will then be provided.

Abstract

Unemployment among young persons has been a major feature of the French labour market for more than thirty years. The unemployment rate among under 25s has risen from 10% in 1979 to nearly 25% in 2013. This has been accompanied by an increase in enrolment in higher education and the development of fixed-term employment contracts and state subsidised jobs. It has now become rare for someone leaving full-time education to straightaway to obtain a job on a standard employment contract. A typical young person will spend a number of years moving between fixed-term contracts, special employment measures and, in some cases, unemployment. However young persons do not remain young: at some point they will usually come to occupy a stable job with a standard employment contract. This paper uses panel data to examine the extent to which initial employment is inefficient in the sense that the pay is below the potential earnings of an individual, where the latter is determined by their human capital (defined in terms of education, other forms of training and labour market experience). Such inefficiency can be seen as the consequence of a bad job match. Using the longitudinal dimension of the survey we also assess the extent to which this earnings inefficiency diminishes over time. Our results suggest that young workers manage to obtain in average about 80% of their potential earnings three years after leaving full-time education. Earnings inefficiency diminishes over time, in so far as the distribution of the latter moves to the right over time. Factors that give rise to earnings inefficiency include: working part-time, living outside of Paris, working outside of an urban area, or being responsible for dependent younger children. Furthermore, we find evidence of wage discrimination against female workers, but the extent of the wage discrimination decreases over time. Our results are robust and in line with job search theories.

The next lunch seminar 18 June

Prof. Dr. Mies Westerveld
UBER-pop, blessing for the consumer? Or a curse for labour law?
Chair of Social Insurance Law & Chair of Legal Aid at the Law Faculty, UvA


Click here for all the AIAS lunch seminars from January – July 2015

 
| More