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A Path to Good Jobs? Unemployment and Low Wages: The Distribution of Opportunity for Young Unskilled Workers

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Author Info
Robert M. Hutchens
Abstract

Hutchens examines three paths by which a young person with limited academic credentials may avoid a life of unemployment and low wages: obtaining additional formal schooling, securing a job that provides secure employment at "good" wages, or acquiring a job that provides skills and thereby opens a door to good future jobs. He finds that the policy most likely to reduce the supply of unskilled labor would include enhancing early childhood education programs, disbursing training vouchers to young adults, and restricting the immigration of unskilled workers. Owing to the difficulty of identifying jobs, occupations, and industries that would consistently result in financial security for those with limited academic skills, Hutchens concludes that, with few exceptions, demand-side interventions will not work.

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Paper provided by Levy Economics Institute, The in its series Economics Public Policy Brief Archive with number 11.

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  13. Heckman, James J & Honore, Bo E, 1990. "The Empirical Content of the Roy Model," Econometrica, Econometric Society, vol. 58(5), pages 1121-49, September. [Downloadable!] (restricted)
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  15. Jeremy I. Bulow & Lawrence H. Summers, 1986. "A Theory of Dual Labor Markets with Application to Industrial Policy, Discrimination and Keynesian Unemployment," NBER Working Papers 1666, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  16. Cappelli, Peter & Chauvin, Keith, 1991. "An Interplant Test of the Efficiency Wage Hypothesis," The Quarterly Journal of Economics, MIT Press, vol. 106(3), pages 769-87, August. [Downloadable!] (restricted)
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  18. repec:fth:coluec:452 is not listed on IDEAS
  19. William T. Dickens & Kevin Lang, 1992. "Labor Market Segmentation Theory: Reconsidering the Evidence," NBER Working Papers 4087, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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