Lost in Transition? Labour Market Entry Sequences of School Leavers in Europe

Abstract

School-to-work transitions consist not just of one single event but of a sequence of transitions that varies significantly across both individuals and countries. In this article, I examine sequences of labour market statuses in 10 European countries using explorative methods of optimal matching (OM) and cluster analysis. The process of labour market entry is observed for the five years that follow school leaving by examining monthly labour market statuses. In order to reduce complexity, sequences are classified according to similarity, and eight distinct sequence types that correspond to the theoretical sequence typology developed by Sackmann and Wingens (2003) are identified. Their distribution across countries is used to test the country classifications described by Marsden (1999) and Gangl et al. (2003), of which the latter has more explanatory power. Finally, the assessment of the quality of school-to-work transitions is carried out using indicators of volatility and integrative capability. These reveal the highest volatility in countries with well-established training systems and the highest integrative potential in countries with mainly general education.