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What Is Happening in the Youth Labour Market in Canada?

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Author Info

  • Paul Beaudry

    ()

  • Thomas Lemieux

    ()

  • Daniel Parent

    ()

Abstract

This paper analyzes the evolution of the labour market participation rate of men and women age 15 to 24 from 1976 to 1998. The0501n question being asked is why youth participation rates fell precipitously during the 1990s? We look at two dimensions of this decline: changes in the participation rate of youth who are not attending school (non-student participation rate) and changes in the employment rate of students. We find that the decline in the non-student participation rate is a consequence of two factors: (1) the overall bad state of the labour market in Canada during the 1990s, and (2) the large increase in school enrollment rates induced by factors other than the state of the labour market. One important finding is that demographic changes (baby boom vs baby bust) is a key explanation behind the steep increase in enrollment rates during the 1980s and 1990s. The only component of youth participation rates which seems to be a problem specific to the 1990s is the sharp drop in employment rates of students age 15 to 19. Cette étude vise à analyser l'évolution du taux de participation des jeunes Canadiens âgés de 15 à 24 ans au cours de la période allant de 1976 à 1998. Plus précisément, nous cherchons à comprendre pourquoi le taux de participation des jeunes a chuté au cours des années 90. Pour ce faire, nous examinons les changements dans le taux de participation des jeunes qui ne fréquentent pas l'école ainsi que les changements dans le taux d'emploi des étudiants. Les résultats indiquent que la baisse du taux de participation des jeunes découle de deux facteurs : (1) les mauvaises conditions globales du marché du travail au Canada durant les années 90, et (2) l'augmentation substantielle de la fréquentation scolaire causée par des facteurs autres que l'effet induit par les conditions du marché du travail. Un résultat important est que les changements démographiques constituent un facteur-clé pouvant expliquer l'accroissement important des taux de fréquentation scolaire au cours des années 80 et 90. La seule composante pouvant expliquer la chute des taux de participation qui soit spécifique aux années 90 est la forte baisse des taux d'emploi des étudiants âgés de 15 à 19 ans.

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Bibliographic Info

Paper provided by CIRANO in its series CIRANO Working Papers with number 99s-44.

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Date of creation: 01 Nov 1999
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Handle: RePEc:cir:cirwor:99s-44

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Keywords: Education; labour market; Éducation; marché du travail;

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References

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  1. Robert Shimer, 1999. "The Impact of Young Workers on the Aggregate Labor Market," NBER Working Papers 7306, National Bureau of Economic Research, Inc.
  2. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
  3. Paul Beaudry & David A. Green, 2000. "Cohort patterns in Canadian earnings: assessing the role of skill premia in inequality trends," Canadian Journal of Economics, Canadian Economics Association, vol. 33(4), pages 907-936, November.
  4. Sanders Korenman & David Neumark, 2000. "Cohort Crowding and Youth Labor Markets (A Cross-National Analysis)," NBER Chapters, in: Youth Employment and Joblessness in Advanced Countries, pages 57-106 National Bureau of Economic Research, Inc.
  5. David Card & Thomas Lemieux, 2000. "Adapting to Circumstances (The Evolution of Work, School,and Living Arrangements among North American Youth)," NBER Chapters, in: Youth Employment and Joblessness in Advanced Countries, pages 171-214 National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Frank T. Denton & Christine H. Feaver & Byron G. Spencer, 2002. "Alternative Pasts, Possible Futures: A "What If" Study of the Effects of Fertility on the Canadian Poulation and Labour Force," Quantitative Studies in Economics and Population Research Reports 367, McMaster University.
  2. J. Emery & Ana Ferrer, 2009. "Marriage market imbalances and labor force participation of Canadian women," Review of Economics of the Household, Springer, vol. 7(1), pages 43-57, March.
  3. Campolieti, Michele & Fang, Tony & Gunderson, Morley, 2009. "Labour Market Outcomes and Skills Acquisition of High-School Dropouts," CLSSRN working papers clsrn_admin-2009-25, Vancouver School of Economics, revised 15 Mar 2009.
  4. Oreopoulos, Philip & Wachter, Till von & Heisz, Andrew, 2008. "The Short- and Long-Term Career Effects of Graduating in a Recession: Hysteresis and Heterogeneity in the Market for College Graduates," IZA Discussion Papers 3578, Institute for the Study of Labor (IZA).
  5. Michael B Coelli, 2009. "Parental Job Loss, Income Shocks and the Education Enrolment of Youth," Department of Economics - Working Papers Series 1060, The University of Melbourne.
  6. Picot, Garnett & Heisz, Andrew & Nakamura, A., 2001. "Job Tenure, Worker Mobility and the Youth Labour Market During the 1990s," Analytical Studies Branch Research Paper Series 2001155e, Statistics Canada, Analytical Studies Branch.
  7. Daniel Parent, 2002. "La Prime Associée au Diplôme d'Études Secondaires et le Décrochage Scolaire au Canada," CIRANO Project Reports 2002rp-05, CIRANO.
  8. Daniel Parent, 1999. "Labour Market Outcomes and Schooling in Canada: Has the Value of a High School Degree Changed over Time?," CIRANO Working Papers 99s-42, CIRANO.
  9. Daniel Parent, 2004. "The Effect of High School Employment on Educational Attainment in Canada," Cahiers de recherche 0413, CIRPEE.

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