The Effect of Labor Market Polarization on the College Students' Employment

This paper aims to assess the effect of the labor market environment on various aspects of college students' job market related behaviors. In some cases, college students hide or evade their unemployment status by extending school registration or transferring to another school. By estimating the effect of the macroeconomic variables on college students' labor market related outcomes, it is found that labor market polarization has a significant effect on both the nominal unemployment and the hidden actions of college students. It implies that the labor market structure is a key element in understanding youth employment, and the youth labor policy should focus more on micro and institutional level of labor market reform.