TY - JOUR
T1 - Does the first job affect current youth working status in Bangladesh?
AU - Mussida, Chiara
AU - Sciulli, Dario
PY - 2021
Y1 - 2021
N2 - Abstract
Purpose
This paper evaluates how the first job when individuals entered the labor market affects the probability of youth being currently employed in formal or informal work in Bangladesh.
Design/methodology/approach
The analysis is based on data from the ILO School-to-Work Transition Surveys. The authors use a full-information maximum likelihood approach to estimate a two-equation model, which accounts for selection into the labor market when estimating the impact of entry status on current work outcomes. The main equation outcome follows a multinomial distribution thus avoiding a priori assumptions about the level of individual’s utility associated with each work status.
Findings
The authors find that entering the labor market in a vulnerable employment position (i.e. contributing family work or self-employment) traps into vulnerable employment and prevents the transition to both informal and, especially, formal paid work. This finding holds when accounting for endogeneity of the entry status and it is valid both in the short and in the long run. Young women are less likely to enter the labor market, and once entered they are less likely to access formal paid wok and more likely to being inactive than young men. Low education anticipates the entry in the labor market, but it is detrimental for future employment prospects.
Originality/value
The findings indicate the presence of labor market segmentation between vulnerable and non-vulnerable employment and suggest the endpoint quality of the school-to-work transition is crucial for later employment prospects of Bangladeshi youth.
AB - Abstract
Purpose
This paper evaluates how the first job when individuals entered the labor market affects the probability of youth being currently employed in formal or informal work in Bangladesh.
Design/methodology/approach
The analysis is based on data from the ILO School-to-Work Transition Surveys. The authors use a full-information maximum likelihood approach to estimate a two-equation model, which accounts for selection into the labor market when estimating the impact of entry status on current work outcomes. The main equation outcome follows a multinomial distribution thus avoiding a priori assumptions about the level of individual’s utility associated with each work status.
Findings
The authors find that entering the labor market in a vulnerable employment position (i.e. contributing family work or self-employment) traps into vulnerable employment and prevents the transition to both informal and, especially, formal paid work. This finding holds when accounting for endogeneity of the entry status and it is valid both in the short and in the long run. Young women are less likely to enter the labor market, and once entered they are less likely to access formal paid wok and more likely to being inactive than young men. Low education anticipates the entry in the labor market, but it is detrimental for future employment prospects.
Originality/value
The findings indicate the presence of labor market segmentation between vulnerable and non-vulnerable employment and suggest the endpoint quality of the school-to-work transition is crucial for later employment prospects of Bangladeshi youth.
KW - Bangladesh, Work outcomes, Selection, Informal employment
KW - Bangladesh, Work outcomes, Selection, Informal employment
UR - http://hdl.handle.net/10807/188081
U2 - 10.1108/IJM-04-2020-0175
DO - 10.1108/IJM-04-2020-0175
M3 - Article
SN - 0143-7720
VL - 42
SP - 1025
EP - 1046
JO - International Journal of Manpower
JF - International Journal of Manpower
ER -