Working Their Way to Young Adulthood: Labour Market Outcomes of Working in Adolescence

Abstract

This study contributes to the theoretical and empirical debate on how adolescent employment affects later labour market resources. Specifically, we view such employment as having a complex relation with labour market outcomes in young adulthood, depending on the specific resource examined: the likelihood to be employed and the earnings level. Focusing on Israeli millennials, we used administrative longitudinal data from the Israel National Insurance Institute with respect to a representative sample of the 1991 cohort, covering ages 12–28. Findings show that while employment during adolescence increases the likelihood of working in young adulthood, once employed, it decreases earnings, suggesting that adolescent employment has relations of both inclusion and exclusion with respect to the labour market resources of young adults.