A Leave of Absence from College and Labor Market Outcomes

Youth unemployment rate has been deteriorating. Faced with a tough job market condition, many college students choose to take a leave of absence and to learn new skills outside the school. However, it is not clear whether their decision is beneficial in terms of labor market outcomes. Using the 2009 graduates occupational mobility survey (GOMS), this study examines the relationship between the length of leave of absence and labor market outcomes of college graduates. This study focuses on those students who took leave of absence for three main purposes: to study abroad, to study for qualification/certification examinations, and to prepare for the job market. The empirical analysis result shows that the longer the leave of absence, the higher the probability of being hired, for those students who took a leave of absence to study abroad or to prepare for the job market. However, for those students who took a leave of absence to study qualification/certification examinations, a longer period of the leave of absence tends to lower the probability of being hired. The empirical result also shows that students who took leave of absence longer tend to receive higher wages in the labor market. This study contributes to the literature by providing empirical evidence on the relationship between leave of absence and labor market outcome.