Journal of Population Economics

, Volume 12, Issue 2, pp 287–312 | Cite as

The impact of local labour markets on investment in further education: Evidence from the England and Wales youth cohort studies

  • Patricia Rice


The paper focuses on the individual's choice of activity on completion of compulsory schooling – to remain in full-time education or to seek employment – and the factors influencing this decision. Information from the England and Wales Youth Cohort Studies, coupled with labour market data, is used to estimate of logit model of choice and assess the role played by social and market factors. The results show that labour market conditions play an influential role in determining outcomes, particularly in the case of young males with weaker academic qualifications. Consistent with the time-series evidence, we find that participation rates in further education for both males and females are positively related to the unemployment rate in the local labour market, the effects being greater at times of economic recession when unemployment rates are rising.

JEL classification: J24 I21 
Key words: Human capital further education local labour markets 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Springer-Verlag Berlin Heidelberg 1999

Authors and Affiliations

  • Patricia Rice
    • 1
  1. 1.Department of Economics, University of Southampton, Southampton SO17 1BJ, UK (e-mail:

Personalised recommendations