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Age effects in Swedish local labour markets

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Abstract

The paper studies the effects of changes in the age structure on aggregate labour market performance using a panel of Swedish local labour markets. The methodology of Shimer (2001) is used for studying the effects of youth cohort size and is extended to include the full age distribution. The results show that young workers benefit from belonging to a large cohort. This is in line with previous results for the US. Furthermore it is shown that most of the positive effect for young workers is due to an inward shift in the Beveridge-curve even though tightness seems to increase as well. In contrast to the US experience, older workers in Sweden do not benefit from large youth cohorts. Further results show that large numbers of 50 to 60 year old workers have an adverse effect on the labour market. This is consistent with negative externalities from well-matched individuals.

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  • Nordström Skans, Oskar, 2002. "Age effects in Swedish local labour markets," Working Paper Series 2002:11, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2002_011
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    Cited by:

    1. Beate Henschel & Carsten Pohl, 2004. "Auswirkungen des demographischen Wandels auf den Arbeitsmarkt in Sachsen : Analyse und Gegenstrategien," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(03), pages 05-17, June.
    2. Ernesto Amaral & Bernardo Queiroz & Júlia Calazans, 2015. "Demographic changes, educational improvements, and earnings in Brazil and Mexico," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-21, December.
    3. Alfred Garloff & Carsten Pohl & Norbert Schanne, 2013. "Do small labor market entry cohorts reduce unemployment?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(15), pages 379-406, September.
    4. Alfred Garloff & Rüdiger Wapler, 2013. "Are the Number of Skilled Workers Running Out in Germany? The (Non)-Consequences of Demographic Change," ERSA conference papers ersa13p854, European Regional Science Association.
    5. Maria Rita Testa & Vegard Skirbekk & Wolfgang Lutz, 2006. "The Low Fertility Trap Hypothesis. Forces that May Lead to Further Postponement and Fewer Births in Europe," Vienna Yearbook of Population Research, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna, vol. 4(1), pages 167-192.
    6. Ernesto F. L. Amaral & Eduardo Luiz Goncalves Rios-Neto & Joseph E. Potter, 2015. "The Influence of Internal Migration on Male Earnings in Brazil, 1970-2000," Working Papers WR-1090, RAND Corporation.
    7. Christian Dudel, 2009. "The Demographic Dilemma: Fertility, Female Labor Force Participation and Future Growth in Germany 2007-2060," SOEPpapers on Multidisciplinary Panel Data Research 158, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Biagi, Federico & Lucifora, Claudio, 2008. "Demographic and education effects on unemployment in Europe," Labour Economics, Elsevier, vol. 15(5), pages 1076-1101, October.
    9. Jan Boone & Peter Fredriksson & Bertil Holmlund & Jan C. van Ours, 2007. "Optimal Unemployment Insurance with Monitoring and Sanctions," Economic Journal, Royal Economic Society, vol. 117(518), pages 399-421, March.
    10. de Graaff, Thomas & Arribas-Bel, Daniel & Ozgen, Ceren, 2017. "Demographic Aging and Employment Dynamics in German Regions: Modeling Regional Heterogeneity," IZA Discussion Papers 10734, Institute for the Study of Labor (IZA).
    11. repec:ebl:ecbull:eb-17-00465 is not listed on IDEAS
    12. Dahlberg, Susanne & Nahum, Ruth-Aïda, 2003. "Cohort Effects on Earnings Profiles: Evidence from Sweden," Working Paper Series 2003:11, Uppsala University, Department of Economics.
    13. Andrén, Thomas & Gustafsson, Björn Anders, 2002. "Income Effects from Labor Market Training Programs in Sweden During the 80’s and 90’s," IZA Discussion Papers 603, Institute for the Study of Labor (IZA).
    14. Marcus Dittrich & Wolfgang Gerstenberger & Beate Henschel & Gunther Markwardt & Carsten Pohl & Heinz Schmalholz & Marcel Thum, 2004. "Demographische Entwicklung im Freistaat Sachsen : Analyse und Strategien zum Bevölkerungsrückgang auf dem Arbeitsmarkt ; Gutachten im Auftrag der Sächsischen Staatskanzlei," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 36, October.
    15. Beate Henschel & Carsten Pohl, 2004. "Die Auswirkungen des demographischen Wandels auf den Arbeitsmarkt in Sachsen – Analyse und Gegenstrategien," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 57(14), pages 05-14, July.
    16. Cseres-Gergely, Zsombor, 2013. "Kiszorítják-e az idősebb munkavállalók a fiatalokat a közszférában?. Eredmények a magyarországi nyugdíjkorhatár-emelés időszakából
      [Do older employees crowd out younger?. Evidence from Hungary in a
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 837-864.
    17. Alfred Garloff & Carsten Pohl & Norbert Schanne, 2011. "Do smaller labour market entry cohorts really reduce German unemployment?," ERSA conference papers ersa10p658, European Regional Science Association.
    18. Ochsen, Carsten, 2009. "Regional labor markets and aging in Germany," Thuenen-Series of Applied Economic Theory 102, University of Rostock, Institute of Economics.
    19. Mahlberg, Bernhard & Freund, Inga & Crespo Cuaresma, Jesús & Prskawetz, Alexia, 2013. "The age-productivity pattern: Do location and sector affiliation matter?," ECON WPS - Vienna University of Technology Working Papers in Economic Theory and Policy 01/2013, Vienna University of Technology, Institute for Mathematical Methods in Economics, Research Group Economics (ECON).
    20. Ernesto F. L. Amaral & Bernardo L. Queiroz & Julia A. Calazans, 2015. "Effects of Demographic and Educational Changes on the Labor Markets of Brazil and Mexico," Working Papers WR-1089, RAND Corporation.
    21. Michaela Fuchs, 2016. "Unemployment decline in East Germany: the role of demography," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 36(2), pages 145-168, October.
    22. Öckert, Björn, 2002. "Do university enrollment constraints affect education and earnings?," Working Paper Series 2002:16, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    23. repec:eee:joecag:v:1-2:y:2013:i::p:72-82 is not listed on IDEAS
    24. Fuchs, Michaela & Weyh, Antje, 2014. "Demography and unemployment in East Germany : how close are the ties?," IAB Discussion Paper 201426, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    25. Ernesto Friedrich de Lima Amaral & Joseph E. Potter & Daniel Hamermesh & Eduardo Rios-Neto, 2013. "Age, education, and earnings in the course of Brazilian development: Does composition matter?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 28(20), pages 581-612, March.

    More about this item

    Keywords

    Unemployment; cohort crowding; age structure; matching;

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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