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Do the Higher Educated Unemployed Crowd Out the Lower Educated Ones in a Competition for Jobs?

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  • Cockx, Bart

    ()
    (Ghent University)

  • Dejemeppe, Muriel

    ()
    (Université catholique de Louvain)

Abstract

This paper proposes a new method to estimate the extent of job competition between workers with different schooling levels. We estimate the structural parameters of a matching function generalised to incorporate crowding out effects. We use flow data out of unemployment containing information on the level of educational attainment of the worker, but not on the level of schooling required by the employer for the job. The method therefore avoids the bias induced by mismeasurement in the educational requirements. Applied to Belgian data, we find evidence of significant crowding out among dismissed workers, particularly at the highest schooling levels.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 541.

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Length: 44 pages
Date of creation: Aug 2002
Date of revision:
Handle: RePEc:iza:izadps:dp541

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Keywords: job competition; crowding out; overeducation; matching function; duration analysis;

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References

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  1. Coles, Melvyn G & Smith, Eric, 1998. "Marketplaces and Matching," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 239-54, February.
  2. Berman, Eli & Bound, John & Machin, Stephen, 1997. "Implications of Skill-Biased Technological Change: International Evidence," Working Paper Series, Research Institute of Industrial Economics 486, Research Institute of Industrial Economics.
  3. Petrongolo, Barbara & Pissarides, Christopher, 2000. "Looking Into The Black Box: A Survey Of The Matching Function," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2409, C.E.P.R. Discussion Papers.
  4. Abbring, J.H. & Berg, G. van den & Ours, J.C. van, 1999. "Business Cycles and Compositional Variation in U.S. Unemployment," Discussion Paper, Tilburg University, Center for Economic Research 1999-65, Tilburg University, Center for Economic Research.
  5. Berg, G. van den & Gautier, P.A. & Ours, J.C. van & Ridder, G., 1998. "Worker turnover at the firm level and crowding out of lower educated workers," Discussion Paper, Tilburg University, Center for Economic Research 98.104, Tilburg University, Center for Economic Research.
  6. Gautier, Pieter A, 2002. "Unemployment and Search Externalities in a Model with Heterogeneous Jobs and Workers," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 69(273), pages 21-40, February.
  7. F Green & Steven McIntosh & Anna Vignoles, 1999. "Overeducation and Skills - Clarifying the Concepts," CEP Discussion Papers dp0435, Centre for Economic Performance, LSE.
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Citations

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Cited by:
  1. Eva, MORENO-GALBIS & Henri R., SNEESSENS, 2004. "Low-Skilled Unemployment, Capital-Skill Complementarity and Embodied Technical Progress," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2004025, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  2. Eva, MORENO-GALBIS, 2004. "Unemployment and Endogenous Growth with Capital-Skill Complementarity," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2004001, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  3. Cardullo, Gabriele & Van der Linden, Bruno, 2006. "Employment Subsidies and Substitutable Skills: An Equilibrium Matching Approach," IZA Discussion Papers 2073, Institute for the Study of Labor (IZA).
  4. Moreno-Galbis, E., 2006. "Unemployment and endogenous growth with new technologies-skill complementarity," Economic Modelling, Elsevier, Elsevier, vol. 23(2), pages 364-386, March.
  5. Anna BATYRA & Henri SNEESSENS, 2010. "Selective Reductions in Labor Taxation Labour Market Adjustments and Macroeconomic Performance," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2010021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  6. Bonin, Holger & Kempe, Wolfram & Schneider, Hilmar, 2002. "Kombilohn oder Workfare? Zur Wirksamkeit zweier arbeitsmarktpolitischer Strategien," IZA Discussion Papers 587, Institute for the Study of Labor (IZA).
  7. Stephan Kampelmann & François Rycx, 2012. "The Impact of Educational Mismatch on Firm Productivity: Evidence from Linked Panel Data," DULBEA Working Papers, ULB -- Universite Libre de Bruxelles 12-05, ULB -- Universite Libre de Bruxelles.
  8. Olivier, PIERARD, 2004. "Impact of Selective Reductions in Labor Taxation," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2004035, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  9. Olivier Pierrard & Henri Sneessens, 2004. "Biased Technological Shocks, Wage Rigidities and Low-Skilled Unemployment," DNB Working Papers, Netherlands Central Bank, Research Department 020, Netherlands Central Bank, Research Department.
  10. Olivier, Pierrard & Henri R., Sneessens, 2002. "Low-Skilled Unemployment, Biased Technological Shocks and Job Competition," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2003014, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 03 May 2002.

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