Post-Secondary School Choice in Germany: Minimizing the Risk of Being Unemployed?
Roland Amann, Christina J. Schneider
April, 2007
Abstract
This paper analyzes the valuation of the school-to-work transition for individuals graduating from secondary schools. In the past, many scholars have used regional unemployment rates in order to explain post-secondary school attendance. Those papers find that the higher the unemployment rate the higher the enrollment rate at post-secondary school level. Using a unique data set from Germany, we disclose that this clear correlation does not apply to all labor markets. Student's choices from East Germany differ substantially from the choices made by students from West Germany. Looking at regional youth unemployment rates, the observed phenomenon may be explained by the rationality of minimizing the risk of being unemployed.Keywords:
none.