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No Can Do? A Test of the Textbook Model of Labor Markets

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  • M. Goos
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    Abstract

    This study exploits Britain~s expansion of its higher education system between 1988 and 1994 to show that the recent increase in college attaimnent growth rates has decreased college premiums for Britain's youngest workers. This is in line with the predictions from an adverse supply shock in a simple aggregate model of relative demand for and supply of college labor. Moreover, this paper conjec* tures that a simple demand-supply model can go a substantial distance towards explaining the variation in the UK economy-wide average return to college and overall wage inequality.

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    File URL: http://www.econ.kuleuven.be/tem/jaargangen/2001-2010/2007/TEM%202007-2/2007-2%20GOOS.pdf
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    Bibliographic Info

    Article provided by Katholieke Universiteit Leuven, Faculteit Economie en Bedrijfswetenschappen in its journal Review of Business and Economics.

    Volume (Year): LII (2007)
    Issue (Month): 2 ()
    Pages: 217-264

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    Handle: RePEc:ete:revbec:20070202

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    Postal: Naamsestraat 69, 3000 Leuven
    Web page: http://www.econ.kuleuven.be
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