The relationship between labour force status and educational attainment: Evidence from a system of simultaneous equations model
Article
Article Title | The relationship between labour force status and educational attainment: Evidence from a system of simultaneous |
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ERA Journal ID | 18341 |
Article Category | Article |
Authors | Alam, Khorshed (Author) and Mamun, Shamsul Arifeen Khan (Author) |
Journal Title | Economic Analysis and Policy |
Journal Citation | 52, pp. 55-65 |
Number of Pages | 11 |
Year | 2016 |
Publisher | Elsevier |
Place of Publication | Australia |
ISSN | 0313-5926 |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.eap.2016.07.005 |
Web Address (URL) | http://www.sciencedirect.com/science/article/pii/S0313592616300157 |
Abstract | This study presents an estimate of the joint determination of labour market status and educational attainment in Australia using cross-sectional data collected by the Australian Bureau of Statistics. This paper is based on the premise that achieving an increasing level of educational attainment and labour supply does not happen in isolation, rather they are determined jointly. Applying a simultaneous system of two-equations model, the study finds that there is a feedback effect between educational attainment and labour market status. In the labour market equation the effects of achieving a higher educational attainment on the probability of being employed has been statistically significant and the effect is negative. Thus, previous studies that ignored the feedback effects and used a single equation model have produced biased and inaccurate estimates of the effects of educational attainment on labour market outcome. |
Keywords | Simultaneous equations model; Labour supply; Education; Australia |
ANZSRC Field of Research 2020 | 380111. Labour economics |
380201. Cross-sectional analysis | |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | Australian Centre for Sustainable Business and Development |
American International University, Bangladesh | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q396y/the-relationship-between-labour-force-status-and-educational-attainment-evidence-from-a-system-of-simultaneous-equations-model
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