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Taxi drivers with a PhD: trickle down or crowding-out for lower educated workers in Dutch cities?

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  • Roderik Ponds
  • Gerard Marlet
  • Clemens van Woerkens
  • Harry Garretsen

Abstract

Attracting higher educated workers is often seen as a means to stimulate employment in cities in general, leading to lower unemployment for the lower educated, the ‘trickle-down’ effect. However, lower educated workers may also experience crowding-out effects if these higher educated inhabitants accept jobs below their educational level. Based on an empirical analysis of a cross-section of Dutch cities, we find that these crowding-out effects indeed seem to occur. This implies that a trickle-down strategy cannot be seen as a panacea by urban policymakers for the problem of high unemployment amongst lower educated workers.

Suggested Citation

  • Roderik Ponds & Gerard Marlet & Clemens van Woerkens & Harry Garretsen, 2016. "Taxi drivers with a PhD: trickle down or crowding-out for lower educated workers in Dutch cities?," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(2), pages 405-422.
    • Handle: RePEc:oup:cjrecs:v:9:y:2016:i:2:p:405-422.
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    File URL: http://hdl.handle.net/10.1093/cjres/rsw008
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    References listed on IDEAS

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    3. Criscuolo, Chiara & Martin, Ralf & Overman, Henry & Van Reenen, John, 2012. "The Causal Effects of an Industrial Policy," IZA Discussion Papers 6323, Institute of Labor Economics (IZA).
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