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Have the relative employment prospects for the low-skilled deteriorated after all?

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Listed:
  • Knut Røed

  • Morten Nordberg

Abstract

Has the relative unemployment propensity for the low-skilled increased during the 1990’s? We address this question empirically, based on two notions of ‘low skills’; i) low education, and ii) low ability, conditioned on education and work experience. Ability is identified by previous earnings. Evaluated by the education-based measure, we find that unemployment propensity has not developed unfavourably for the low-skilled. Evaluated by the ability-based measure, it has. We uncover a steady deterioration of employment prospects for persons with low ability relative to others with similar formal qualifications. The adverse employment effects of being low-skilled are stronger the higher is formal education. Copyright Springer-Verlag 2004

Suggested Citation

  • Knut Røed & Morten Nordberg, 2004. "Have the relative employment prospects for the low-skilled deteriorated after all?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(1), pages 67-82, February.
  • Handle: RePEc:spr:jopoec:v:17:y:2004:i:1:p:67-82
    DOI: 10.1007/s00148-003-0120-y
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    Cited by:

    1. Roed, Knut, 2005. "Egalitarian wage policies, unemployment and skill-biased technological change," Research in Economics, Elsevier, vol. 59(4), pages 375-387, December.
    2. M. Gulenay Ongan Baskaya & Erkan Erdil, 2003. "Technological Change and ICTs in OECD Countries," STPS Working Papers 0301, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised Jan 2003.
    3. Ekhaugen, Tyra, 2005. "Extracting the causal component from the intergenerational correlation in unemployment," Memorandum 21/2005, Oslo University, Department of Economics.
    4. Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2010. "When Minority Labor Migrants Meet the Welfare State," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 633-676, July.

    More about this item

    Keywords

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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