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Explaining Youth Labour Market Problems In Spain: Crowding-Out, Institutions, Or Technology Shifts?

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  • Dolado, Juan J.
  • Felgueroso, Florentino
  • Jimeno, Juan Francisco

Abstract

This paper examines the empirical evidence regarding the poor performance of the youth labour market in Spain over the last two decades, which entails very high unemployment for both higher and lower educated workers, symptoms of over-education, and low intensity of on-the-job training. It also presents a simple matching model with two types of workers ('educated' and ''non-educated') and two types of jobs ('skilled' and 'unskilled'), under which educated workers may crowd-out non-educated workers from their traditional entry jobs, showing that a combination of an increase in the relative supply of higher educated workers and rigid labour market institutions harms the training and labour market prospects of lower educated workers, while it raises the proportion of higher educated workers performing low-skill jobs.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2398.

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Date of creation: Mar 2000
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Handle: RePEc:cpr:ceprdp:2398

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Keywords: Crowding-Out; Matching; Returns to Education;

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References

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  1. Acemoglu, D, 1996. "Good Jobs Versus Bad Jobs : Theory and Some Evidence," Working papers 96-33, Massachusetts Institute of Technology (MIT), Department of Economics.
  2. Dennis J. Snower, 1998. "Causes of changing earnings inequality," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 69-133.
  3. James Albrecht & Susan Vroman, 2002. "A Matching Model with Endogenous Skill Requirements," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(1), pages 283-305, February.
  4. Mortensen, Dale T & Pissarides, Christopher, 2001. "Taxes, Subsidies and Equilibrium Labour Market Outcomes," CEPR Discussion Papers 2989, C.E.P.R. Discussion Papers.
  5. Ours, J.C. van & Ridder, G., 1995. "Job Matching and Job Competition: Are Lower Educated Workers at the Back of Job Queues?," Open Access publications from Tilburg University urn:nbn:nl:ui:12-142162, Tilburg University.
  6. Christopher A. Pissarides, 1992. "Search Unemployment with on-the-job Search," CEP Discussion Papers dp0074, Centre for Economic Performance, LSE.
  7. Juan J. Dolado & Florentino Felgueroso & Juan F. Jimeno, . "The effects of minimum bargained wages on earnings: Evidence from Spain," Working Papers 97-04, FEDEA.
  8. Nickell, Stephen & Bell, Brian, 1995. "The Collapse in Demand for the Unskilled and Unemployment across the OECD," Oxford Review of Economic Policy, Oxford University Press, vol. 11(1), pages 40-62, Spring.
  9. Ezequiel Uriel Jiménez & Pilar Beneito López & Javier Ferri Carreres & María Luisa Moltó Carbonell, 1996. "Desajuste educativo y formación laboral especializada: efectos sobre los rendimientos salariales," Working Papers. Serie EC 1996-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  10. Pieter A. Gautier, 1999. "Unemployment and Search Externalities in a Model with Heterogeneous Jobs and Heterogeneous Workers," Tinbergen Institute Discussion Papers 99-075/3, Tinbergen Institute.
  11. Mortensen, Dale T & Pissarides, Christopher A, 1994. "Job Creation and Job Destruction in the Theory of Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 397-415, July.
  12. Peter Gottschalk, 1997. "Inequality, Income Growth, and Mobility: The Basic Facts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 21-40, Spring.
  13. Alfonso Alba-Ramírez, 1993. "Mismatch in the Spanish Labor Market: Overeducation?," Journal of Human Resources, University of Wisconsin Press, vol. 28(2), pages 259-278.
  14. van Ours, J. C. & Ridder, G., 1995. "Job matching and job competition: Are lower educated workers at the back of job queues?," European Economic Review, Elsevier, vol. 39(9), pages 1717-1731, December.
  15. Teulings, Coen & Koopmanschap, Marc, 1989. "An econometric model of crowding out of lower education levels," European Economic Review, Elsevier, vol. 33(8), pages 1653-1664, October.
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Citations

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Cited by:
  1. Jimeno, Juan F. & Rodriguez-Palenzuela, Diego, 2002. "Youth unemployment in the OECD: demographic shifts, labour market institutions, and macroeconomic shocks," Working Paper Series 0155, European Central Bank.
  2. Florentino Felgueroso & Sergi Jiménez Martín, 2009. "The "New Growth Model". How and with Whom?," Working Papers 2009-39, FEDEA.
  3. Neugart, Michael & Storrie, Donald, 2002. "Temporary work agencies and equilibrium unemployment," Working Papers in Economics 83, University of Gothenburg, Department of Economics.
  4. Josep Oliver Alonso & José Luís Raymond Bara & Hector Sala Lorda, 2001. "Necesidad de formación en el mercado de trabajo español: composición del empleo y estructura productiva," Working Papers wp0117, Department of Applied Economics at Universitat Autonoma of Barcelona.
  5. Budria, Santiago, 2006. "Education and Inequality: Evidence from Spain," MPRA Paper 1098, University Library of Munich, Germany.
  6. Juan F. Jimeno, . "Demografía, empleo, salarios y pensiones," Working Papers 2002-04, FEDEA.

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