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Stick, Carrot and Skill Acquisition

Author

Listed:
  • Filges, Trine

    (Danish National Institute of Social Research)

  • Larsen, Birthe

    (Department of Economics, Copenhagen Business School)

Abstract

This paper examins the macroeconomic effects of youth unemployement programmes in the form of vocational training (YUPs), developing a two sector general equilibrium model featuring matching frictions and worker-firm wage bargaining for skilled workers. Unskilled sector wages are indexed to skilled sector wages. Workers differ with respect to ability, having importance for the young worker`s skill decision. Furthermore, a young worker may be offered vocational training through YUPs. The total number of skilled workers is therefore determined by these two channels and the interaction between them. We focus on the impact of YUPs on skill division, unemployment distribution workers and aggregate unemployment.

Suggested Citation

  • Filges, Trine & Larsen, Birthe, 2001. "Stick, Carrot and Skill Acquisition," Working Papers 09-2001, Copenhagen Business School, Department of Economics.
    • Handle: RePEc:hhs:cbsnow:2001_009
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    References listed on IDEAS

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    1. repec:bla:scandj:v:99:y:1997:i:1:p:129-42 is not listed on IDEAS
    2. Peter Fredriksson, 1997. "Economic Incentives and the Demand for Higher Education," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(1), pages 129-142, March.
    3. Larsen, Birthe, 2001. "Minimum wages, technological progress and loss of skill," European Economic Review, Elsevier, vol. 45(8), pages 1521-1544, August.
    4. Jensen, P. & Nielsen, M.S. & Rosholm, M., 1999. "The Effects of Benefits, Incentives, and Sanctions on Youth Employment," Papers 99-05, Centre for Labour Market and Social Research, Danmark-.
    5. Åsa Rosén & Etienne Wasmer, 2005. "Higher Education Levels, Firms’ Outside Options and the Wage Structure," LABOUR, CEIS, vol. 19(4), pages 621-654, December.
    6. Filges, Trine & Larsen, Birthe, 2001. "The Impact of Yputh Unemployment Policy," Working Papers 08-2001, Copenhagen Business School, Department of Economics.
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    Cited by:

    1. Kluve, Jochen & Fertig, Michael & Jacobi, Lena & Nima, Leonhard & Schaffner, Sandra & Schmidt, Christoph M. & Card, David & Góra, Marek & Jensen, Peter & Leetmaa, Reelika & Patacchini, Eleonora & van , 2005. "Study on the effectiveness of ALMPs: Research project for the European Commission, DG Employment, Social Affairs and Equal Opportunities. Final report," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 69929.
    2. 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.
    3. Goulas, Eleftherios & Zervoyianni, Athina, 2018. "Active labour-market policies and output growth: Is there a causal relationship?," Economic Modelling, Elsevier, vol. 73(C), pages 1-14.

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    More about this item

    Keywords

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    JEL classification:

    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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