Young and Out in Germany: On the Youths' Chances of Labor Market Entrance in Germany

This paper deals with the labor market entrance of young people in the Federal Republic" of Germany. The main focus is on failures during this stage. First, an overview of the youth" labor market in Germany is given. Then, the transition from vocational training to work is" analyzed: The duration of the first spell of non-employment after completion of formal" vocational training is analyzed by means of a proportional hazard function approach. Besides the" strong influence of the human capital variables there is a striking effect of the family background" of the youths. The following section addresses the extent to which early failures in the work" history have long-lasting effects on future incomes. There is some evidence for a permanent" income reduction.