Skip to main content

Youth unemployment and personality traits

Journal Article


Download full-text (Open Access)

Abstract


  • This paper investigates the relationship between personality traits in adolescence and

    education and labour market choices. In particular, we investigate the impact of locus

    of control, effort and diligence, and self-esteem on the risk of youths being unemployed

    (sometimes referred to as NEET (“Not in Education, Employment or Training”), assuming

    unconfoundedness. Thus, our focus is on early dropouts from both education and the

    labour market at age 18–20. We use matching methods to control for a rich set of

    adolescent and family characteristics by estimating the treatment effects, conditional on

    unconfoundedness, of multiple personality traits at the same time (Wooldridge,

    Econometric Analysis of Cross Section and Panel Data, 2010). Finally, we use the

    methodology proposed by Altonji (J Polit Economy 113:151–184, 2005) that involves

    making hypotheses about the correlation between the unobservables and observables

    that determine the outcomes and the unobservables that influence personality. Our

    results show that individuals that display low effort and diligence, low self-esteem, and

    external locus of control are estimated to be more likely to drop out of education and

    employment.

Publication Date


  • 2015

Citation


  • Mendolia, S. & Walker, I. (2015). Youth unemployment and personality traits. IZA Journal of Labor Economics, 4 (19), 1-26.

Scopus Eid


  • 2-s2.0-84983261438

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1803&context=buspapers

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/799

Number Of Pages


  • 25

Start Page


  • 1

End Page


  • 26

Volume


  • 4

Issue


  • 19

Abstract


  • This paper investigates the relationship between personality traits in adolescence and

    education and labour market choices. In particular, we investigate the impact of locus

    of control, effort and diligence, and self-esteem on the risk of youths being unemployed

    (sometimes referred to as NEET (“Not in Education, Employment or Training”), assuming

    unconfoundedness. Thus, our focus is on early dropouts from both education and the

    labour market at age 18–20. We use matching methods to control for a rich set of

    adolescent and family characteristics by estimating the treatment effects, conditional on

    unconfoundedness, of multiple personality traits at the same time (Wooldridge,

    Econometric Analysis of Cross Section and Panel Data, 2010). Finally, we use the

    methodology proposed by Altonji (J Polit Economy 113:151–184, 2005) that involves

    making hypotheses about the correlation between the unobservables and observables

    that determine the outcomes and the unobservables that influence personality. Our

    results show that individuals that display low effort and diligence, low self-esteem, and

    external locus of control are estimated to be more likely to drop out of education and

    employment.

Publication Date


  • 2015

Citation


  • Mendolia, S. & Walker, I. (2015). Youth unemployment and personality traits. IZA Journal of Labor Economics, 4 (19), 1-26.

Scopus Eid


  • 2-s2.0-84983261438

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1803&context=buspapers

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/799

Number Of Pages


  • 25

Start Page


  • 1

End Page


  • 26

Volume


  • 4

Issue


  • 19