College Students’ Coworker Networks and Labor Market Entry

The project analyzes whether and to what extent college students’ coworker networks from student jobs affect their labor market transition after graduation. The empirical analysis is based on administrative data, which includes all pre- and post-graduation job-related networks of college students who graduated from a large German university between 1995 and 2016. Our identification strategy overcomes potential bias due to non-random selection into networks by controlling for coherent sets of individual, network, and establishment characteristics, as well as establishment fixed effects, and by distinguishing between close and less close colleagues in the same establishment. Our results suggest that college graduates benefit from the quality of their coworkers in student jobs by earning higher wages in their first job after graduation. These findings can contribute to understand which factors are important for a successful transition from higher education to the labor market.

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