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The Swedish Youth Labor Market in Boom and Depression

In: Youth Employment and Joblessness in Advanced Countries

Author

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  • Per-Anders Edin
  • Anders Forslund
  • Bertil Holmlund

Abstract

This paper is concerned with the labor market experience of Swedish youths during the 1980s and the 1990s. The first objective is to portray early economic attainment among young Swedes. The second objective of the paper is to examine the impact of labor market programs on youth employment. We find that the slump in the 1990s has been associated with dramatic increases in youth unemployment and youth participation in active labor market programs. The impact on unemployment rates by age and education has been roughly proportional, however. The evolution of employment and unemployment does not offer much ground for the popular hypothesis that the recent rise in unemployment is driven by large and pervasive shifts in the demand for labor by skill attributable to technological innovation. The employment crisis has been met by an unprecedented increase in active labor market programs, in large part targeted at unemployed youths. There is a risk that these programs may crowd out regular youth employment, a hypothesis that is supported in our empirical investigation of regular youth employment in Swedish municipalities.
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Suggested Citation

  • Per-Anders Edin & Anders Forslund & Bertil Holmlund, 2000. "The Swedish Youth Labor Market in Boom and Depression," NBER Chapters, in: Youth Employment and Joblessness in Advanced Countries, pages 357-380, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:6811
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    References listed on IDEAS

    as
    1. Skedinger, Per, 1995. "Employment Policies and Displacement in the Youth Labor Market," Working Paper Series 432, Research Institute of Industrial Economics.
    2. Calmfors, Lars & Skedinger, Per, 1995. "Does Active Labour-Market Policy Increase Employment? Theoretical Considerations and Some Empirical Evidence from Sweden," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 11(1), pages 91-109, Spring.
    3. repec:hhs:iuiwop:432 is not listed on IDEAS
    4. repec:hhs:iuiwop:429 is not listed on IDEAS
    5. Chinhui Juhn & Kevin M. Murphy & Robert H. Topel, 1991. "Why Has the Natural Rate of Unemployment Increased over Time?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(2), pages 75-142.
    6. Anders Forslund & Alan B. Krueger, 1997. "An Evaluation of the Swedish Active Labor Market Policy: New and Received Wisdom," NBER Chapters, in: The Welfare State in Transition: Reforming the Swedish Model, pages 267-298, National Bureau of Economic Research, Inc.
    7. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
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    Cited by:

    1. Larsson, Laura, 2000. "Evaluation of Swedish Youth Labour Market Programmes," Working Paper Series 2000:6, Uppsala University, Department of Economics.
    2. Anton Nilsson, 2015. "Who suffers from unemployment? The role of health and skills," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-24, December.
    3. Ekström, Erika, 2002. "The value of a third year in upper secondary vocational education - Evidence from a piloting scheme," Working Paper Series 2002:23, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    4. Larsson, Laura, 2000. "Evaluation of Swedish youth labour market programmes," Working Paper Series 2000:1, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    5. Matz Dahlberg & Anders Forslund, 2005. "Direct Displacement Effects of Labour Market Programmes," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(3), pages 475-494, September.
    6. Lassibille, Gerard & Navarro Gomez, Lucia & Aguilar Ramos, Isabel & de la O Sanchez, Carolina, 2001. "Youth transition from school to work in Spain," Economics of Education Review, Elsevier, vol. 20(2), pages 139-149, April.

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • 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
    • 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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