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Higher Education and the Determination of Aggregate Male Employment by Age

Author

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  • Stenberg, Anders

    () (Department of Economics, Umeå University)

  • Wikström, Magnus

    () (Department of Economics, Umeå University)

Abstract

This paper studies the determinants of age-specific employment rates among Swedish males, focusing on the effect of education on employment. We use cohort specific data for the time period 1984-1996 covering cohorts aged 21-45. Two states of the labour market are compared; the high employment period 1984-90 and the recent downturn 1991-96. It is found that aggregate age-group specific employment rates increase with the proportion of the cohort with an academic degree. The effect is stronger in the downturn period as compared to the boom period. However, we do not find any strong evidence in favour of the hypothesis that the effect of higher education on employment is declining with age. Estimations to capture crowding out effects between age-groups indicate larger effects in times of high employment when the own cohort effect is weaker.

Suggested Citation

  • Stenberg, Anders & Wikström, Magnus, 2000. "Higher Education and the Determination of Aggregate Male Employment by Age," Umeå Economic Studies 520, Umeå University, Department of Economics.
  • Handle: RePEc:hhs:umnees:0520
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    References listed on IDEAS

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    1. Saint-Paul, Gilles, 1996. "Are the unemployed unemployable?," European Economic Review, Elsevier, vol. 40(7), pages 1501-1519, August.
    2. Teulings, Coen & Koopmanschap, Marc, 1989. "An econometric model of crowding out of lower education levels," European Economic Review, Elsevier, vol. 33(8), pages 1653-1664, October.
    3. Michael L. Wachter & Choongsoo Kim, 1979. "Time Series Changes in Youth Joblessness," NBER Working Papers 0384, National Bureau of Economic Research, Inc.
    4. Saint-Paul, Gilles, 1994. "Unemployment and Increasing Returns to Human Capital," CEPR Discussion Papers 921, C.E.P.R. Discussion Papers.
    5. Richard B. Freeman & David A. Wise, 1982. "The Youth Labor Market Problem: Its Nature Causes and Consequences," NBER Chapters,in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 1-16 National Bureau of Economic Research, Inc.
    6. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
    7. Nickell, Stephen, 1979. "Education and Lifetime Patterns of Unemployment," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 117-131, October.
    8. Zimmermann, Klaus F, 1991. "Ageing and the Labor Market: Age Structure, Cohort Size and Unemployment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 4(3), pages 177-200, August.
    9. McKenna, C. J., 1996. "Education and the distribution of unemployment," European Journal of Political Economy, Elsevier, vol. 12(1), pages 113-132, April.
    10. Gregg, Paul & Manning, Alan, 1997. "Skill-biassed change, unemployment and wage inequality," European Economic Review, Elsevier, vol. 41(6), pages 1173-1200, June.
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    Cited by:

    1. Brox, James A. & Carvalho, Emanuel, 2008. "A Demographically Augmented Shift-Share Employment Analysis: An Application to Canadian Employment Patterns," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 0(Issue 1), pages 1-11.

    More about this item

    Keywords

    Education; Crowding-out; Employment;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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