DP12120 The Difficult School-to-Work Transition of High School Dropouts: Evidence from a field experiment

Author(s): Pierre Cahuc, Stéphane Carcillo, Andreea Minea
Publication Date: June 2017
Keyword(s): Job subsidies, Training, youth unemployment
JEL(s): J60, J68
Programme Areas: Labour Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=12120

This paper investigates the effects of the labor market experience of high school dropouts four years after leaving school by sending fictitious resumes to real job postings in France. Compared to those who have stayed unemployed since leaving school, the callback rate is not raised for those with employment experience, whether it is subsidized or non-subsidized, in the market or non-market sector, if there is no training accompanied by skill certification. In particular, we find no stigma effect associated with subsidized or non-market sector work experience. Moreover, training accompanied by skill certification improves youth prospects only when the local unemployment rate is sufficiently low, which occurs in one fifth of the commuting zones only.