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The lost race between schooling and technology

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

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Handle: RePEc:cpb:discus:25

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Related research
Keywords: education; subsidies; wages; wage inequality; skill;

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Find related papers by JEL classification:
D33 - Microeconomics - - Distribution - - - Factor Income Distribution
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  2. Stephen V. Cameron & James J. Heckman, 1999. "The Dynamics of Educational Attainment for Blacks, Hispanics, and Whites," NBER Working Papers 7249, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Joëlle Noailly & Daniël Waagmeester & Bas Jacobs & Marieke Rensman & Dinand Webbink, 2005. "Scarcity of science and engineering students in the Netherlands," CPB Documents 92, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  2. 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. [Downloadable!]
  3. 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. [Downloadable!] (restricted)
  4. Richard Nahuis & Henri L.F. de Groot, 2003. "Rising Skill Premia You ain't seen nothing yet?," Working Papers 03-02, Utrecht School of Economics. [Downloadable!]
    Other versions:
  5. Jan Kakes & Jasper de Winter, 2008. "Preferences for redistribution in the Netherlands," DNB Working Papers 179, Netherlands Central Bank, Research Department. [Downloadable!]
  6. Bas Jacobs, 2005. "Simulating the Lisbon skills targets in WorldScan," CPB Memoranda 135, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  7. Arnaud Dupuy, 2007. "Will the Skill-Premium in the Netherlands Rise in the Next Decades?," IZA Discussion Papers 2708, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  8. Schindler, Dirk, 2008. "Human Capital, Multiple Income Risk and Social Insurance," Discussion Papers 2008/18, Department of Finance and Management Science, Norwegian School of Economics and Business Administration. [Downloadable!]
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