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The Low-Skill, Bad-Job Trap

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  • Snower, Dennis J.

Abstract

The paper explains how a country can fall into a 'low-skill, bad-job trap', in which workers acquire insufficient training and firms provide insufficient skilled vacancies. In particular, the paper argues that in countries where a large proportion of the workforce is unskilled, firms have little incentive to provide good jobs (requiring high skills and providing high wages), and if few good jobs are available, workers have little incentive to acquire skills. In this context, the paper examines the need for and effectiveness of training policy, and provides a possible explanation for why Western countries have responded so differently to the broad-based shift in labour demand from unskilled to skilled labour.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 999.

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Date of creation: Sep 1994
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Handle: RePEc:cpr:ceprdp:999

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Related research

Keywords: Employment; Productivity; Search; Skills; Training; Vacancies;

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Citations

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Cited by:
  1. Zuzana Brixiova & Wenli Li, 1998. "Skill Acquisition and Private Firm Creation in Transition Economies," William Davidson Institute Working Papers Series 162, William Davidson Institute at the University of Michigan.
  2. Nick Adnett, . "Competition in the School Curriculum: the economic and policy context in the UK," Working Papers 001, Staffordshire University, Business School.
  3. Luigi Bonatti, 1999. "Growth, real interest, employment and wage determination," Department of Economics Working Papers 9907, Department of Economics, University of Trento, Italia.
  4. Monfort, Philippe & Ottaviano, Gianmarco Ireo Paolo, 2002. "Spatial Mismatch and Skill Accumulation," CEPR Discussion Papers 3324, C.E.P.R. Discussion Papers.
  5. Araujo, Ricardo Azevedo & Moreira, Helmar Nunes, 2011. "Lyapunov stability in an evolutionary game theory model of the labor market," MPRA Paper 36994, University Library of Munich, Germany.
  6. Johannes Stephan, 2003. "Industrial Specialisation and Productivity Catch-Up in CEECs - Patterns and Prospects," ERSA conference papers ersa03p320, European Regional Science Association.
  7. Charlot, Olivier & Decreuse, Bruno, 2010. "Over-education for the rich, under-education for the poor: A search-theoretic microfoundation," Labour Economics, Elsevier, vol. 17(6), pages 886-896, December.
  8. Carillo Maria Rosaria, 2000. "The Effect of Professionalisation and the Demand for Social Status on the Adoption of New Technologies," Rivista italiana degli economisti, Società editrice il Mulino, issue 3, pages 473-502.
  9. Junankar, Pramod N. (Raja) & Mahuteau, Stéphane, 2004. "Do Migrants Get Good Jobs? New Migrant Settlement in Australia," IZA Discussion Papers 1434, Institute for the Study of Labor (IZA).
  10. Luigi Bonatti, 2003. "'Soft' growth and the role of monetary policy in selecting the long-run equilibrium path," Working Papers 0306, University of Bergamo, Department of Economics.
  11. William Blankenau & Gabriele Camera, 2006. "A Simple Economic Theory of Skill Accumulation and Schooling Decisions," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 9(1), pages 93-115, January.
  12. Cihan Bilginsoy, 2005. "Delivering Skills: Apprenticeship Program Sponsorship and Transition from Training," Working Paper Series, Department of Economics, University of Utah 2005_01, University of Utah, Department of Economics.
  13. Sauro Mocetti, 2004. "Social Protection and Human Capital: Test of a Hypothesis," Department of Economics University of Siena 425, Department of Economics, University of Siena.
  14. Ardiana N. Gashi & Geoff Pugh & Nick Adnett, 2008. "Technological change and employer-provided training: Evidence from German establishments," Economics of Education Working Paper Series 0026, University of Zurich, Institute for Strategy and Business Economics (ISU).
  15. Dr Johannes Stephan, 2008. "Evolving Structural Patterns in the Enlarging European Division of Labour: Sectoral and Branch Specialisation and the Potentials for Closing the Productivity Gap," Working Papers id:1650, eSocialSciences.
  16. Johannes Stephan, 2003. "EU Accession Countries’ Specialisation Patterns in Foreign Trade and Domestic Production - What can we infer for catch-up prospects?," IWH Discussion Papers 184, Halle Institute for Economic Research.
  17. Erol Taymaz, 2009. "Informality and Productivity: Productivity Differentials between Formal and Informal Firms in Turkey," ERC Working Papers 0901, ERC - Economic Research Center, Middle East Technical University, revised Mar 2009.

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