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The lost race between schooling and technology

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  • Bas Jacobs

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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 projected increase in wage inequality. Our findings suggest that education subsidies are not very effective in combating increases in wage inequality.

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Bibliographic Info

Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Discussion Paper with number 25.

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Date of creation: Nov 2003
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Handle: RePEc:cpb:discus:25

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Citations

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Cited by:
  1. R. Nahuis & H.L.F. de Groot, 2003. "Rising skills premia: you ain't seen nothing yet," Working Papers, Utrecht School of Economics 03-02, Utrecht School of Economics.
  2. Jan Kakes & Jasper de Winter, 2008. "Preferences for redistribution in the Netherlands," DNB Working Papers, Netherlands Central Bank, Research Department 179, Netherlands Central Bank, Research Department.
  3. A. Dupuy, 2007. "Will the skill-premium in the Netherlands rise in the next decades?," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 39(21), pages 2723-2731.
  4. Rebecca Galloway & James Jozefowicz, 2008. "The Effects of Immigration on Regional Unemployment Rates in The Netherlands," International Advances in Economic Research, International Atlantic Economic Society, vol. 14(3), pages 291-302, August.
  5. 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.
  6. 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.
  7. Bas Jacobs, 2005. "Simulating the Lisbon skills targets in WorldScan," CPB Memorandum, CPB Netherlands Bureau for Economic Policy Analysis 135, CPB Netherlands Bureau for Economic Policy Analysis.
  8. Joëlle Noailly & Daniël Waagmeester & Bas Jacobs & Marieke Rensman & Dinand Webbink, 2005. "Scarcity of science and engineering students in the Netherlands," CPB Document, CPB Netherlands Bureau for Economic Policy Analysis 92, CPB Netherlands Bureau for Economic Policy Analysis.

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