4 - Exploring Employment Disparities and Social Capital in School-to-Work Transitions: Difference between Higher Education Graduates and Dropouts in Japan

Presentation Abstract
In this study, we investigate whether the significance of social capital in school to work transitions varies depending on an individual's graduation status. In Japan, special employment opportunities are available for new graduates, but dropouts cannot access this system. To facilitate dropouts' transition into "desirable" first occupations, it is essential to mitigate the negative impact associated with their dropout status while also exploring appropriate job-matching opportunities that can replace traditional new graduate hiring. The role of personal connections, including family, in this transition process is believed to be important. To confirm this, we compare the impact of transitions through personal network on the risk of leaving one's first job, using data from the Social Stratification and Social Mobility Surveys of 2005 and 2015, between Higher Education dropouts and graduates. The result reveals a more pronounced decrease in the risk of leaving their initial jobs for dropouts who utilize personal networks compared to graduates. However, it may be more appropriate to interpret that when not utilizing personal network, a dropout history becomes such a strong negative signal that it makes more challenging to secure 'desirable' jobs. Alternatively, the sense of guilt that may arise from leaving a job due to a referral from an acquaintance could be the anchor. Regardless of any of the processes, if individuals cannot access the 'well-paved path' of the new graduate hiring system, employment inequality becomes more pressing, highlighting the crucial importance of who you know.