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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.
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    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.

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    File URL: http://degree.ubvu.vu.nl/repec/vua/wpaper/pdf/19980049.pdf
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    Bibliographic Info

    Paper provided by VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number 0049.

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    Date of creation: 1998
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    Handle: RePEc:vua:wpaper:1998-49

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    Related research

    Keywords: unemployment; wages; job turnover; education; business cycle;

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