Youth labour market. What role does education play in transitions-to-work?

Identifier:  TFG:660

Handle: https://hdl.handle.net/20.500.11797/TFG660

Authors:  Romeu Serra, Marina

Abstract:
The aim of this project is to analyze the relationship between the level of educational attainment and the quality of youth transitions into the labour market. In 2008, Spain entered a period of economic crisis, which has been particularly harmful for youth. They have experienced not only the highest growth of the unemployment rate, but have also suffered from precarious job situations. This scenario contrasts with the fact that they are considered as the most qualified generation in Spanish history. Since education is actually an investment in time and financial resources, individuals decide to invest as they expect positive returns in the future. However, in the Spanish context, the supply of qualifications cannot be absorbed by labour demand, given Spanish particular educational structure, which is characterized by presenting a higher proportion of university students in comparison with most of the OECD countries. Furthermore, the labour market has not generated jobs that require such educational level. As a result, there is a certain risk of educational mismatches as the educational system may provide too much education. As a result, situations of overducation and overqualification emerge. University graduates tend to fall into jobs that do not require a university degree and displace those people whose maximum educational attainment is secondary education to jobs that require less education (bumping down), or even, they can be expelled out of the labour market (crowding out). After this analysis of youth employment current situation, the conclusion is that education makes a positive difference. The higher the education level, the lower the unemployment and temporary jobs. The expectations of receiving higher levels of income with a higher educational attainment as well as experience, along with other social benefits, is an incentive for individuals to pursue education and training. Studying is considered a key factor to improve the position of people in the labour market.