Entrants to the labour force: changes in market conditions and educational qualifications of youth

Abstract

This study examines the position of youth in the New Zealand labour market over the past 2 decades, including links between education and the labour market. Changes in the labour market position of school leavers, teenagers, and older youth are described. Changes in the supply and value of school qualifications of entrants to the labour force are examined and a data series on school qualifications of entrants to clerical jobs shows the influence of fluctuations in slackness of the labour market. The results indicate, for entry to these jobs, a selection function of school qualifications which entails declining exchange value as the supply of qualifications increases, in contrast to constant exchange value within the education system.