Active Labour Market Programmes, Education and Unemployment
AbstractThe paper formalises the interaction between active labour market programmes and ordinary higher education in a general equilibrium framework. Both education in prorgammes and ordinary higher education serve to increase the supply of high-skilled labour. The model features a dual labour market where wages and employment are determined by labour-demand and wage-setting schedules. Programmes are shown to have crowding-out effects on both regular employment and the number of students in ordinary higher education. Numerical calibrations of the model show that social welfare is lower in an economy with educational programmes than in an economy without such programmes.
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Bibliographic InfoPaper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2001:11.
Length: 26 pages
Date of creation: 12 Jun 2001
Date of revision:
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Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
Phone: +46 8 16 20 00
Fax: +46 8 16 14 25
Web page: http://www.ne.su.se/
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Active labour market programme; education; unemployment; dual labour market; welfare;
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
- J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
- R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
This paper has been announced in the following NEP Reports:
- NEP-LAB-2001-12-19 (Labour Economics)
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