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Worker turnover at the firm level and crowding out of lower educated workers

Author

Listed:
  • van den Berg, G.
  • Gautier, P.A.
  • van Ours, J.C.

    (Tilburg University, Center For Economic Research)

  • Ridder, G.

Abstract

In The Netherlands, as in many countries: unemployment rates of lower educated workers are higher and more cyclical than unemployment rates of higher educated workers. In this paper we test whether this is caused by the fact that more highly educated individuals occupy simple jobs in cyclical downturns. We use a unique firm-worker dataset to investigate this hypothesis. In addition, we examine to what extent workers with more years of schooling earn higher wages than their less educated colleagues at the same job level in the same firm. We find that at one of the lower job complexity levels, the difference between schooling of the inflow and the outflow increases in cyclical downturns. At the same time, workers with surplus schooling earn somewhat lower wages at this job level. For the other job complexity levels we find no evidence for crowding out.
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Suggested Citation

  • van den Berg, G. & Gautier, P.A. & van Ours, J.C. & Ridder, G., 1998. "Worker turnover at the firm level and crowding out of lower educated workers," Discussion Paper 98.104, Tilburg University, Center for Economic Research.
    • Handle: RePEc:tiu:tiucen:4e90fc35-9481-4828-97cb-655958bcbca2
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    References listed on IDEAS

    as
    1. A. Gautier, Pieter & J. van den Berg, Gerard & C. van Ours, Jan & Ridder, Geert, 2002. "Worker turnover at the firm level and crowding out of lower educated workers," European Economic Review, Elsevier, vol. 46(3), pages 523-538, March.
    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. Duncan, Greg J. & Hoffman, Saul D., 1981. "The incidence and wage effects of overeducation," Economics of Education Review, Elsevier, vol. 1(1), pages 75-86, February.
    4. James Albrecht & Susan Vroman, 2002. "A Matching Model with Endogenous Skill Requirements," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(1), pages 283-305, February.
    5. Barry McCormick, 1990. "A Theory of Signalling During Job Search, Employment Efficiency, and "Stigmatised" Jobs," Review of Economic Studies, Oxford University Press, vol. 57(2), pages 299-313.
    6. Gautier, P.A. & van den Berg, G. & van Ours, J.C. & Ridder, G., 1999. "Separations at the firm level," Other publications TiSEM 0bc95b07-e6ff-4899-87a6-4, Tilburg University, School of Economics and Management.
    7. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
    8. Gautier, Pieter A, 2002. "Unemployment and Search Externalities in a Model with Heterogeneous Jobs and Workers," Economica, London School of Economics and Political Science, vol. 69(273), pages 21-40, February.
    9. van Ours, J. C. & Ridder, G., 1995. "Job matching and job competition: Are lower educated workers at the back of job queues?," European Economic Review, Elsevier, vol. 39(9), pages 1717-1731, December.
    10. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    11. John Tyler & Richard J. Murnane & Frank Levy, 1995. "Are Lots of College Graduates Taking High School Jobs? A Reconsiderationof the Evidence," NBER Working Papers 5127, National Bureau of Economic Research, Inc.
    12. Daniel S. Hamermesh, 1993. "Labor Demand and the Source of Adjustment Costs," NBER Working Papers 4394, National Bureau of Economic Research, Inc.
    13. 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.
    14. Hersch, Joni, 1991. "Education Match and Job Match," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 140-144, February.
    15. Russell W. Rumberger, 1987. "The Impact of Surplus Schooling on Productivity and Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 22(1), pages 24-50.
    16. Walter Y. Oi, 1962. "Labor as a Quasi-Fixed Factor," Journal of Political Economy, University of Chicago Press, vol. 70, pages 538-538.
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    More about this item

    Keywords

    unemployment; wages; labour turnover. education; business cycles;

    JEL classification:

    • 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

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