Scandinavian Working Papers in Economics

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The Effect of Labour Market Conditions on the Time-to-Completion of Higher Education in Denmark

2005, Volume 2005, issue 1, pp. 81-103

Nabanita Datta Gupta () and Mark Yuying An
Additional contact information
Nabanita Datta Gupta: The Danish National Institute of Social Research, Postal: Herluf Trolles Gade 11, 1052 København, Danmark
Mark Yuying An: Fannie Mae, U.S.A.,, Postal: Granite Park VII, 5600 Granite Pkwy, Plano, TX 75024, USA

Abstract: The effect of labour market conditions on the time-to-completion of higher education is analysed on a sample of high school graduates and equivalents drawn from the 0.5% Danish Longitudinal Sample database. A semi-parametric hazard model of education duration with correction for unobserved heterogeneity is proposed and estimated. Results indicate that completion hazard is significantly affected by individual background characteristics, program-specific factors and labour market variables. The expected wage upon completion significantly increases degree completion hazard while the higher the individual's own earnings while studying, the lower the completion hazard. However, the unemployment degree that students may expect to face upon graduation does not, as expected, have a delaying impact on education completion.

Keywords: Labour market conditions; education

JEL-codes: A10

Language: Danish

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