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

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Author Info
Dolado, Juan J.
Felgueroso, Florentino
Jimeno, Juan Francisco

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

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Find related papers by JEL classification:
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search

References listed on IDEAS
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. Juan J. Dolado & Florentino Felgueroso & Juan F. Jimeno, . "The effects of minimum bargained wages on earnings: Evidence from Spain," Working Papers 97-04, FEDEA.
    Other versions:
  2. 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.
  3. Acemoglu, Daron, 1997. "Good Jobs versus Bad Jobs: Theory and Some Evidence," CEPR Discussion Papers 1588, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. 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. [Downloadable!] (restricted)
  5. 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. [Downloadable!] (restricted)
  6. Mortensen, Dale T & Pissarides, Christopher A, 1994. "Job Creation and Job Destruction in the Theory of Unemployment," Review of Economic Studies, Blackwell Publishing, vol. 61(3), pages 397-415, July. [Downloadable!] (restricted)
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  7. 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. [Downloadable!]
  8. 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. [Downloadable!] (restricted)
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  9. Snower, Dennis J., 1999. "Causes of Changing Earnings Inequality," IZA Discussion Papers 29, Institute for the Study of Labor (IZA). [Downloadable!]
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  10. Gottschalk, Peter, 1997. "Inequality, Income Growth, and Mobility: The Basic Facts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 21-40, Spring. [Downloadable!] (restricted)
  11. Pissarides, Christopher A, 1994. "Search Unemployment with On-the-Job Search," Review of Economic Studies, Blackwell Publishing, vol. 61(3), pages 457-75, July. [Downloadable!] (restricted)
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  12. Oliver Jean Blanchard & Peter Diamond, 1989. "The Beveridge Curve," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(1989-1), pages 1-76. [Downloadable!]
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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. Juan F. Jimeno & Diego Rodríguez-Palenzuela, . "Youth unemployment in the OECD: Demographic shifts, labour market institutions, and macroeconomic shocks," Working Papers 2002-15, FEDEA. [Downloadable!]
    Other versions:
  2. 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. [Downloadable!]
  3. José Julián Escario & José Alberto Molina, . "Do tobacco taxes reduce lung cancer mortality?," Working Papers 2000-17, FEDEA. [Downloadable!]
  4. Steve Bradley & MJ Andrews & D Stott, 2001. "The school-to-work transition, skill preferences and matching," Working Papers 000034, Lancaster University Management School, Economics Department. [Downloadable!]
    Other versions:
  5. Juan J. Dolado & Florentino Felgueroso & Juan F. Jimeno, . "Female Employment and Occupational Changes in the 1990s: How is the EU Performing Relative to the US?," Working Papers 2000-18, FEDEA. [Downloadable!]
    Other versions:
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