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The Impact of Youth Unemployment Policy: A Shift of Workers into the Skilled Labour Force

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  • Trine Filges
  • Birthe Larsen

Abstract

. This paper examines the impact on unemployment, wages, distribution and welfare of Youth Unemployment Programmes (YUPs). The aim of YUPs is to increase the number of young people acquiring skills and thereby reduce unemployment. We consider the assumption of a completely successful YUP, which delivers higher skills, and analyse what happens when the number of skilled workers increases relative to the number of unskilled workers. The analysis uses a search model with heterogeneous workers and jobs.

Suggested Citation

  • Trine Filges & Birthe Larsen, 2004. "The Impact of Youth Unemployment Policy: A Shift of Workers into the Skilled Labour Force," LABOUR, CEIS, vol. 18(3), pages 379-414, September.
    • Handle: RePEc:bla:labour:v:18:y:2004:i:3:p:379-414
    DOI: 10.1111/j.1121-7081.2004.00270.x
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    References listed on IDEAS

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    1. James Albrecht & Susan Vroman, 2002. "A Matching Model with Endogenous Skill Requirements," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(1), pages 283-305, February.
    2. Filges, Trine & Larsen, Birthe, 2001. "The Impact of Yputh Unemployment Policy," Working Papers 08-2001, Copenhagen Business School, Department of Economics.
    3. Trine Filges & Birthe Larsen, 2005. "Stick, Carrot and Skill Acquisition," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(3), pages 495-519, September.
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    Cited by:

    1. Glatt, Jordan & Wunnava, Phanindra V., 2016. "Help Not Wanted: The Dismal Science of Youth Unemployment's Scarring Effect," IZA Discussion Papers 10069, Institute of Labor Economics (IZA).

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