week 8 assignment.pdf - 3 Methodology In this section we...

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3. Methodology In this section we describe our dataset, define the variables for the analysis and explain the estimation methods. 3.1. Data Our data stem from the Swiss graduate survey conducted by the Swiss Federal Statistical Office (SFSO) every second year on all graduates from formal institutions of higher education. The SFSO survey contains detailed information on employment and education during studies, and for both one and five years after graduation. Our dataset consists of pooled cross-sectional data from the one-year post-graduation survey waves in 2011, 2013, 2015 and 2017, and the five-year post-graduation survey waves in 2015 and 2017. 9 We limit our analysis to HE graduates from fields of study in which work experience is not largely included, nor an internship required, after graduation. We therefore drop all HE graduates with a teaching, medical, law or doctoral degree. Next, to have HE graduates with uninterrupted study paths – thereby avoiding unobserved work experience – we restrict our sample to HE graduates not older than 30. Further, they must have completed their entry diploma for higher education (i.e. academic or vocational diploma) within seven years before higher education graduation. This time span gives them five years for studying for both bachelor and master degrees, an additional year for repeating a semester, and another year for fulfilling potential entry requirements. Finally, we focus on HE graduates from the Swiss education system who transitioned directly into the labour market. Therefore, we drop all HE graduates who have a non-Swiss educational background, acquired a higher education degree abroad, continue their higher education studies, are self-employed, or do not seek employment due to family, health or other issues. We consider a set of dependent variables because, as Nunley et al. (2016) argue, work experience might operate through different channels, thereby influencing the labour market outcomes differently at different stages in the recruitment process. One year after graduation, only a handful of HE graduates remain unemployed. Therefore, we analyse the impact of work experience on wages, search time and internships (within
one year after graduation). To analyse longer-term consequences, we consider wages and employment positions five years after graduation, as well as whether HE graduates had any unemployment spells during that period. Wage is important because it measures the labour market value of an employee. We define gross wage – expressed in full-time employment – as comprising contract wage, wage from additional hours, and bonuses. Time of job search stands for a period of wage absence and insecurity: the shorter, the better. We construct the search time

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