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Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet Conference 2006, Barcelona

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Page 1: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

Lost in Transition - Labour Market Entry Sequences

of School Leavers in Europe

Christian Brzinsky-Fay,

Social Science Research Center Berlin (WZB)

EPUNet Conference 2006, Barcelona

Page 2: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 2

Research Review

► sequence analysis of school-to-work transitions (Scherer 2001; McVicar/Anyadike-Danes 2002)

► sequence types within life-course approach (Sackmann/Wingens 2003)

► transitional labour markets (Schmid 1998, 2002) & social risk management (Schmid/Schömann 2004)

► internal/external labour markets (ILM/OLM) (Marsden 1999; Shavit/Müller 1998)

► empirical analysis of coordination process between education system & labour market (Allmendinger 1989; Gangl 2003; Hannan/Raffe 1997; Hillmert 2002; Russell/O‘Connell; etc.)

Page 3: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 3

Dataset & Basic Concepts

► monthly calendar data on labour market status

► time span: 1993-2000

► categories: education, apprenticeship, employment, unemployment, inactivity

► excluded countries: Sweden, Netherlands, Luxemburg, Finland

► beginning of school-to-work transition:

► after leaving general education

► apprenticeship education

► observation window: 5 years = 60 months

► left censoring: proxy variables (worked before etc.)

► indicators: volatility, integrative capability, high risk sequences

Page 4: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 4

Hypotheses

1. Despite a high extent of cross-national variation all types of transition sequences appear in every country.

2. Countries, who are described as ILM systems, will show more changes between labour market statuses than those countries with OLM systems.

3. Countries with well established initial and/or further training systems will have more positive volatility than countries without these systems.

4. A high integrative capability exists in countries where the coordination process between education system and the labour market either is structured or emphasizes the temporal dimension of labour market integration.

5. Countries with a lower degree of coordination will have a higher share of high risk transition sequences.

Page 5: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 5

Method: Sequence Analysis

3. compare sequences

optimalmatching

5. associate patternsto other variables

e.g. regression models

4. group sequences

clusteranalysis

1. describe sequences

aggregatedmeasures

2. visualise sequences

sequenceindex plots

Page 6: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 6

Method: Optimal Matching

substitution costs: 1indel costs: 1

B E A T L E SS T O N E S --------------1 1 1 1 1 1 1 = 7 7/7 = 1

B E A T L E S- S T O N E S---------------1 1 1 1 1 0 0 = 5 5/7 0.71

substitution costs: 1indel costs: 1

B E A T L E SK I N K S - --------------1 1 1 1 1 1 1 = 7 7/7 = 1

B E A T L E S- - K I N K S-------------1 1 1 1 1 1 0 = 6 6/7 0.86

Page 7: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 7

aggregate characteristics of sequences IDK BE FR IE IT GR ES PT DE UK Total

education 19.7 26.2 12.6 17.8 11.4 7.1 14.0 12.7 5.5 5.5 11.5

apprenticeship 8.4 3.1 0.1 3.5 1.5 0.3 1.3 0.1 19.7 1.4 3.6

employment 23.3 18.3 27.6 31.0 13.8 19.2 19.8 26.6 24.3 37.8 23.6

unemployment 4.4 9.9 9.9 5.4 25.8 20.0 17.6 10.2 5.1 8.2 14.0

inactivity 4.2 2.5 9.8 2.2 7.5 13.5 7.3 10.3 5.4 7.2 7.3

3.3 2.5 2.6 2.4 2.4 2.6 2.7 2.4 2.8 2.2 2.5

5.8 3.7 4.8 4.9 3.7 3.7 5.0 3.8 4.2 4.0 4.3

education 1.2 0.8 0.7 1.5 0.6 0.4 0.9 0.6 0.3 0.4 0.7

apprenticeship 0.6 0.3 0.0 0.2 0.2 0.1 0.2 0.0 0.9 0.2 0.2

employment 2.2 1.1 1.9 2.2 0.9 1.1 1.8 1.3 1.8 1.9 1.6

unemployment 0.9 0.8 1.3 0.7 1.4 1.3 1.5 0.9 0.8 1.2 1.2

inactivity 0.9 0.8 0.9 0.3 0.6 0.9 0.7 0.9 0.4 0.4 0.6

2.1 1.4 1.2 4.0 0.8 0.7 1.3 1.1 2.6 1.5 1.4

N 52 48 160 164 361 156 206 101 177 208 1633

source: ECHP, own calculations

volatility indicator

average duration

in...

average number of different statuses

average number of episodes (total)

average number of episodes

in...

Page 8: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 8

male female ISCED 0-2 ISCED 3 ISCED 4-7 Total

education 11.3 11.6 3.5 9.3 20.1 11.5

apprenticeship 4.1 3.1 1.5 5.2 1.9 3.6

employment 24.4 22.8 21.6 22.7 26.5 23.6

unemployment 12.9 15.1 19.1 15.9 7.2 14.0

inactivity 7.3 7.5 14.2 6.9 3.7 7.3

2.6 2.4 2.4 2.6 2.6 2.5

4.6 4.0 4.4 4.0 4.6 4.3

education 0.7 0.6 0.3 0.5 1.1 0.7

apprenticeship 0.3 0.2 0.2 0.3 0.2 0.2

employment 1.7 1.4 1.5 1.4 1.9 1.6

unemployment 1.2 1.1 1.5 1.2 0.9 1.2

inactivity 0.7 0.6 0.9 0.6 0.5 0.6

1.4 1.3 0.8 1.2 2.4 1.4

N 804 829 500 903 225 1633

source: ECHP, own calculations

volatility indicator

average duration

in...

average number of different statuses

average number of episodes (total)

average number of episodes

in...

Page 9: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 9

monthly proportion of statuses by country

020

4060

8010

00

2040

6080

100

020

4060

8010

0

Denmark Belgium France Ireland

Italy Greece Spain Portugal

Germany United Kingdom

inactivity

unemployment

employment

apprenticeship

education

statuses

perc

ent

source: ECHP, own calculations(c) Christian Brzinsky-Fay (2006)

monthly proportion of statuses by country

Page 10: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 10

Sequences Order and Sequence Typesfrequency percent cumulated sequence type

1. UE - EM 95 5.8 5.8 detour

2. EM 84 5.1 10.9 rupture

3. UE 54 3.3 14.2 rupture

4. IN - ED 48 2.9 17.1 return

5. UE - EM - UE - EM 40 2.4 19.6 detour

6. EM - AP 39 2.4 21.9 fusion

7. UE - ED 35 2.1 24.1 return

8. IN 32 2.0 26.0 rupture

9. EM - ED 29 1.8 27.8 interruption

10. AP - EM 26 1.6 29.4 bridge

11. UE - IN 26 1.6 31.0 change

12. IN - EM 25 1.5 32.5 detour

13. EM - UE - EM 24 1.5 33.9 detour

14. EM - ED - EM 23 1.4 35.3 detour

15. EM - IN - EM 22 1.3 36.7 detour

source: ECHP, own calculations

sequence order

Page 11: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 11

General Characteristics of Clusters

1 2 3 4 5 6 7

education 49.5 28.4 3.9 2.6 2.2 0.4 3.6

apprenticeship 0.5 1.0 1.2 0.2 4.5 0.3 35.1

employment 4.1 19.7 8.3 4.0 36.7 56.7 15.3

unemployment 2.3 6.0 40.6 5.4 9.6 2.2 4.2

inactivity 3.6 5.0 5.9 47.8 7.0 0.4 1.8

2.5 3.1 2.5 2.0 2.8 1.8 2.9

3.9 5.8 4.4 3.0 4.7 2.5 4.1

education 1.7 1.8 0.4 0.3 0.3 0.1 0.3

apprenticeship 0.1 0.1 0.2 0 0.4 0.1 1.2

employment 1.1 2.1 1.2 0.5 2.1 1.5 1.7

unemployment 0.4 0.9 2.1 0.7 1.3 0.7 0.7

inactivity 0.7 0.8 0.6 1.4 0.7 0.1 0.3

2.6 2.4 0.7 0.4 1.4 2.1 3.2

200 199 384 100 443 223 84

source: ECHP, own calculations

N

cluster

average duration

in...

average number of different statuses

average number of episodes

average number of episodes

in...

volatility indicator

Page 12: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 12

monthly proportion of statuses by cluster

020

4060

8010

00

2040

6080

100

020

4060

8010

0

return cluster link cluster failure cluster

dropout cluster detour cluster express cluster

bridge clusterinactivity

unemployment

employment

apprenticeship

education

statuses

perc

ent

(c) Christian Brzinsky-Fay (2006)source: ECHP, own calculations

monthly proportion of statuses by cluster

Page 13: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 13

sequence index plots by cluster0

50

100

150

200

0 20 40 60

return cluster0

50

100

150

200

0 20 40 60

link cluster0

100

200

300

400

0 20 40 60

failure cluster0

20

40

60

80

100

0 20 40 60

dropout cluster

0

100

200

300

400

0 20 40 60

detour cluster0

50

100

150

200

250

0 20 40 60

express cluster0

20

40

60

80

0 20 40 60

bridge cluster

(c) Christian Brzinsky-Fay (2006)source: ECHP, own calculations

sequence index plots by cluster

Page 14: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 14

transition characteristics of clusters

return link failure dropout detour express bridge

volatility + + - - - + ++

integrative capability

(+/-) + - - ++ ++ +

high risk character

- + + ++ ++ - -

source: ECHP, own calculations

Page 15: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 15

appearance of clusters in countries

0 10 20 30 40 50

0 10 20 30 40 50 0 10 20 30 40 50 0 10 20 30 40 50

bridgeexpress

detourdropout

failurelink

return

bridgeexpress

detourdropout

failurelink

return

bridgeexpress

detourdropout

failurelink

return

bridgeexpress

detourdropout

failurelink

return

bridgeexpress

detourdropout

failurelink

return

bridgeexpress

detourdropout

failurelink

return

bridgeexpress

detourdropout

failurelink

return

bridgeexpress

detourdropout

failurelink

return

bridgeexpress

detourdropout

failurelink

return

bridgeexpress

detourdropout

failurelink

return

bridgeexpress

detourdropout

failurelink

return

Denmark Belgium France Ireland

Italy Greece Spain Portugal

Germany United Kingdom Total

percent

(c) Christian Brzinsky-Fay (2006)source: ECHP, own calculations

appearance of clusters in countries

Page 16: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 16

integrative capability & unemployment

Denmark

Belgium

France

Ireland

ItalyGreece

Spain

Portugal

Germany

United Kingdom

1020

3040

aver

age

yout

h un

empl

oym

ent

40 50 60 70 80integrative capability

(c) Christian Brzinsky-Fay (2006)source: ECHP, own calculations; EUROSTAT

integrative capability & unemployment

Page 17: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 17

high risk sequences & unemployment

Denmark

Belgium

France

Ireland

Italy

Greece

Spain

Portugal

Germany

United Kingdom

1020

3040

aver

age

yout

h un

empl

oym

ent

40 50 60 70 80 90high risk indicator

(c) Christian Brzinsky-Fay (2006)source: ECHP, own calculations; EUROSTAT

high risk sequences & unemployment

Page 18: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 18

Conclusions I

► method: ► computational explorative instrument (optimal matching) and

grouping method (cluster analysis) to reduce complexity► clusters:

► detour cluster is most common in European countries► bridge and dropout doesn‘t appear in every country► country-specific: failure for IT, GR, ES; express for UK; link for

DK, IE; bridge for DE; return for BE► problems:

► parallel statuses► no ECHP anymore

► ILM-OLM dichotomy:► explains only number of status changes

Page 19: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 19

Conclusions II

► volatility:

► IE, DE, DK highest share of changes between favourable statuses in countries with well established initial and/or further training system

► integrative capability:

► DE, IE, DK, UK high share of integrative labour market entry sequences in countries with structured coordination or emphasis on temporal dimension of integration process

► high risk sequences:

► GR, IT, ES high values; BE, DE, IE, UK low values

► policy implications:

► European policies can be targeted to specific transition sequences across countries

Page 20: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 20

Thank You for Your Attention!

Page 21: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

8./9. May 2006 Christian Brzinsky-Fay Folie 21

references I► Abbott, Andrew / Angela Tsay (2000): Sequence Analysis and Optimal Matching

Methods in Sociology, in: Sociological Methods & Research 29 (1); pp. 3-33.► Allmendinger, Jutta (1989): Educational Systems and Labor Market Outcomes, in:

European Sociological Review 5 (3); pp. 231-250.► Gangl, Markus (2003): The structure of labour market entry in Europe: a typological

analysis, in: Walter Müller / Markus Gangl, Eds.: Transitions from education to work in Europe. Oxford: Oxford University Press; pp. 95-116.

► Hannan, Damian F. / David Raffe et al. (1997): Cross-National Research on School to Work Transitions: An Analytical Framework, Paris, OECD.

► Hillmert, Steffen (2002): Labour market integration and institutions: an Anglo-German comparison, in: Work, Employment and Society 16 (4); pp. 675-701.

► MacIndoe, Heather / Andrew Abbott (2004): Sequence Analysis and Optimal Matching Techniques for Social Science Data, in: Melissa Hardy / Alan Bryman, Eds.: Handbook of Data Analysis. London / Thousand Oaks / New Dehli: Sage Publications; pp. 387-406.

► Marsden, David (1999): A theory of Employment Systems. Micro-Foundations of Societal Diversity. Oxford: Oxford University Press.

► McVicar, Duncan / Michael Anyadike-Danes (2002): Predicting successful and unsuccessful transitions from school to work by using sequence methods, in: Journal of the Royal Statistical Society 165 (2); pp. 317-334.

Page 22: Lost in Transition - Labour Market Entry Sequences of School Leavers in Europe Christian Brzinsky-Fay, Social Science Research Center Berlin (WZB) EPUNet

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references II► Russell, Helen / Philip O'Connell (2001): Getting a Job in Europe: The Transition from

Unemployment to Work among Young People in Nine European Countries, in: Work, Employment & Society 15 (1); pp. 1-24.

► Sackmann, Reinhold / Matthias Wingens (2003): From Transitions to Trajectories. Sequence Types, in: Walter R. Heinz, Ed. Social Dynamics of the Life Course. Transitions, Institutions, and Interrelations. New York: Aldine de Gruyter; pp. 93-115.

► Scherer, Stefani (2001): Early Career Patterns: A Comparison of Great Britain and West Germany, in: European Sociological Review 17 (2); pp. 119-144.

► Schmid, Günther (1998): Transitional Labour Markets: A New European Employment Strategy. Berlin: Wissenschaftszentrum Berlin für Sozialforschung (WZB) (Discussion Paper FS I 98-206).

► Schmid, Günther (2002): Towards a Theory of Transitional Labour Markets, in: Günther Schmid / Bernard Gazier, Eds.: The Dynamics of Full Employment. Social Integration Through Transitional Labour Markets. Cheltenham/Northampton: Edward Elgar; pp. 151-195.

► Schmid, Günther (2006): Social Risk Management Through Transitional Labour Markets, in: Socio-Economic Review 4 (1); pp. 1-33.

► Schmid, Günther / Klaus Schömann (2004): Managing Social Risks Through Transitional Labour Markets. Towards A European Social Model. Amsterdam: SISWO/Institute for the Social Sciences (TLM.NET Working Paper 2004-01).

► Shavit, Yossi / Walter Müller, Eds. (1998): From School to Work: A Comparative Study of Educational Qualifications and Occupational Destinations. Oxford: Clarendon Press.