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The Swedish Youth Labor Market in Boom and Depression

Author

Listed:
  • Edin, Per-Anders

    (Department of Economics)

  • Forslund, Anders

    (Department of Economics)

  • Holmlund, Bertil

    (Department of Economics)

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.

Suggested Citation

  • Edin, Per-Anders & Forslund, Anders & Holmlund, Bertil, 1998. "The Swedish Youth Labor Market in Boom and Depression," Working Paper Series 1998:3, Uppsala University, Department of Economics.
    • Handle: RePEc:hhs:uunewp:1998_003
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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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    Keywords

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    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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