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

Author

Listed:
  • Roed,K.
  • Nordberg,M.

    (University of Oslo, Department of Economics)

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
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Roed,K. & Nordberg,M., 2000. "Have the relative employment prospects for the low-skilled deteriorated after all?," Memorandum 19/2000, Oslo University, Department of Economics.
  • Handle: RePEc:hhs:osloec:2000_019
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    File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2000/Memo-19-2000.pdf
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    References listed on IDEAS

    as
    1. Layard, R. & Nickell, S., 1991. "Unemployment in the OECD Countries," Economics Series Working Papers 99130, University of Oxford, Department of Economics.
    2. Manacorda, Marco & Petrongolo, Barbara, 1999. "Skill Mismatch and Unemployment in OECD Countries," Economica, London School of Economics and Political Science, vol. 66(262), pages 181-207, May.
    3. Richard Jackman & Richard Layard & Marco Manacorda & Barbara Petrongolo, 1997. "European versus US Unemployment: Different Responses to Increased Demand for skill?," CEP Discussion Papers dp0349, Centre for Economic Performance, LSE.
    4. Daniel Cohen & Arnaud Lefranc & Gilles Saint-Paul, 1997. "French unemployment: a transatlantic perspective," Economic Policy, CEPR;CES;MSH, vol. 12(25), pages 265-292, October.
    5. Narendranathan, W & Stewart, Mark B, 1993. "How Does the Benefit Effect Vary as Unemployment Spells Lengthen?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(4), pages 361-381, Oct.-Dec..
    6. Paul R. Krugman, 1994. "Past and prospective causes of high unemployment," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, issue Jan, pages 49-98.
    7. Nickell, Stephen & Bell, Brian, 1995. "The Collapse in Demand for the Unskilled and Unemployment across the OECD," Oxford Review of Economic Policy, Oxford University Press, vol. 11(1), pages 40-62, Spring.
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    Citations

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    Cited by:

    1. 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.
    2. Roed, Knut, 2005. "Egalitarian wage policies, unemployment and skill-biased technological change," Research in Economics, Elsevier, vol. 59(4), pages 375-387, December.
    3. 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.
    4. Ekhaugen, Tyra, 2005. "Extracting the causal component from the intergenerational correlation in unemployment," Memorandum 21/2005, Oslo University, Department of Economics.

    More about this item

    Keywords

    skills;

    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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