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The Effect of Education on Youth Employment

Student: Berdiev Taulan

Supervisor: Larisa I. Smirnykh

Faculty: Faculty of Economic Sciences

Educational Programme: Economics (Bachelor)

Year of Graduation: 2021

This paper evaluates the impact of the level of education and the number of years of education on self-employment and income of young people using data of The Russian Longitudinal Monitoring Survey - Higher School of Economics (RLMS-HSE) for 2015-2019. The analysis of self-selection in self-employment is carried out using the Heckman model. The impact of education on self-employment is estimated using a probit model with endogenous regressors. The estimation of the income of young people was performed using the 2SLS method with an endogenous regressor. The results of the analysis showed that young people with higher education predominate among the self-employed. It is established that the number of years of education and the increase in the level of education have a positive impact on the probability of youth self-employment. The income of young self-employed individuals is higher than the salary of young employees.

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