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The Lost Race between Schooling and Technology

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  • Bas Jacobs

Abstract

We study the evolution of wage inequality between skilled and unskilled workers in the Netherlands for the years 1969-2020. Our analysis is based on estimates of the production structure in the Netherlands, projections of the relative supply of skilled workers, and projections regarding shifts in relative demand for skilled workers. Wage inequality will increase under plausible assumptions because relative demand for skilled workers will increase more rapidly than the relative supply of skilled workers. We study the potential of education subsidies to higher education in order to stimulate the supply of skilled workers thereby off-setting the increase in projected wage inequality. Our findings suggest that education subsidies are not very effective in combatting increases in wage inequality.

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Bibliographic Info

Article provided by Springer in its journal De Economist.

Volume (Year): 152 (2004)
Issue (Month): 1 (03)
Pages: 47-78

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Handle: RePEc:kap:decono:v:152:y:2004:i:1:p:47-78

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Web page: http://www.springerlink.com/link.asp?id=100260

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  1. Francesco Caselli, 1999. "Technological Revolutions," American Economic Review, American Economic Association, vol. 89(1), pages 78-102, March.
  2. Robert A.J. Dur & Coen N. Teulings, 2001. "Education and Efficient Redistribution," Tinbergen Institute Discussion Papers 01-090/3, Tinbergen Institute, revised 12 Jun 2003.
  3. Alan B. Krueger, 1991. "How Computers Have Changed the Wage Structure: Evidence From Microdata, 1984-1989," NBER Working Papers 3858, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. A. Dupuy, 2007. "Will the skill-premium in the Netherlands rise in the next decades?," Applied Economics, Taylor & Francis Journals, vol. 39(21), pages 2723-2731.
  2. Richard Nahuis & Henri de Groot, 2003. "Rising skill premia; you ain't seen nothing yet?," CPB Discussion Paper 20, CPB Netherlands Bureau for Economic Policy Analysis.
  3. Gelauff, George & Lejour, Arjan, 2006. "The new Lisbon Strategy: An estiamtion of the impact of reaching 5 Lisbon targets," MPRA Paper 16168, University Library of Munich, Germany.
  4. Schindler, Dirk, 2008. "Human Capital, Multiple Income Risk and Social Insurance," Discussion Papers 2008/18, Department of Business and Management Science, Norwegian School of Economics.
  5. Joëlle Noailly & Daniël Waagmeester & Bas Jacobs & Marieke Rensman & Dinand Webbink, 2005. "Scarcity of science and engineering students in the Netherlands," CPB Document 92, CPB Netherlands Bureau for Economic Policy Analysis.
  6. Jan Kakes & Jasper de Winter, 2008. "Preferences for redistribution in the Netherlands," DNB Working Papers 179, Netherlands Central Bank, Research Department.
  7. Rebecca Galloway & James Jozefowicz, 2008. "The Effects of Immigration on Regional Unemployment Rates in The Netherlands," International Advances in Economic Research, Springer, vol. 14(3), pages 291-302, August.
  8. Bas Jacobs, 2005. "Simulating the Lisbon skills targets in WorldScan," CPB Memorandum 135, CPB Netherlands Bureau for Economic Policy Analysis.

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