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Worker turnover at the firm level and crowding out of lower educated workers

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  • Berg, Gerard J. van den

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

  • Gautier, Pieter A.
  • Ours, Jan C.

Abstract

In The Netherlands, as in many countries: unemployment rates of lower educated workers are higher and more cyclical than unemployment rates of higher educated workers. In this paper we test whether this is caused by the fact that more highly educated individuals occupy simple jobs in cyclical downturns. We use a unique firm-worker dataset to investigate this hypothesis. In addition, we examine to what extent workers with more years of schooling earn higher wages than their less educated colleagues at the same job level in the same firm. We find that at one of the lower job complexity levels, the difference between schooling of the inflow and the outflow increases in cyclical downturns. At the same time, workers with surplus schooling earn somewhat lower wages at this job level. For the other job complexity levels we find no evidence for crowding out.

Suggested Citation

  • Berg, Gerard J. van den & Gautier, Pieter A. & Ours, Jan C., 1998. "Worker turnover at the firm level and crowding out of lower educated workers," Serie Research Memoranda 0049, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    • Handle: RePEc:vua:wpaper:1998-49
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    References listed on IDEAS

    as
    1. A. Gautier, Pieter & J. van den Berg, Gerard & C. van Ours, Jan & Ridder, Geert, 2002. "Worker turnover at the firm level and crowding out of lower educated workers," European Economic Review, Elsevier, vol. 46(3), pages 523-538, March.
    2. 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.
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    6. Pieter A. Gautier & Gerard J. van den Berg & Jan C. van Ours & Geert Ridder, 1999. "Separations at the Firm Level," Contributions to Economic Analysis, in: The Creation and Analysis of Employer-Employee Matched Data, pages 313-327, Emerald Group Publishing Limited.
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    More about this item

    Keywords

    unemployment; wages; job turnover; education; business cycle;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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