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Explaining Youth Labour Market Problems In Spain: Crowding-Out, Institutions, Or Technology Shifts?

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  • Dolado, Juan J
  • Jimeno, Juan Francisco
  • Felgueroso, Florentino

Abstract

This paper examines the empirical evidence regarding the poor performance of the youth labour market in Spain over the last two decades, which entails very high unemployment for both higher and lower educated workers, symptoms of over-education, and low intensity of on-the-job training. It also presents a simple matching model with two types of workers ('educated' and ''non-educated') and two types of jobs ('skilled' and 'unskilled'), under which educated workers may crowd-out non-educated workers from their traditional entry jobs, showing that a combination of an increase in the relative supply of higher educated workers and rigid labour market institutions harms the training and labour market prospects of lower educated workers, while it raises the proportion of higher educated workers performing low-skill jobs.

Suggested Citation

  • Dolado, Juan J & Jimeno, Juan Francisco & Felgueroso, Florentino, 2000. "Explaining Youth Labour Market Problems In Spain: Crowding-Out, Institutions, Or Technology Shifts?," CEPR Discussion Papers 2398, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:2398
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    Full references (including those not matched with items on IDEAS)

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Competencias educativas en España: novedades
      by Lucas Gortazar in Politikon on 2015-09-24 13:30:18

    Citations

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    Cited by:

    1. Kampelmann, Stephan & Mahy, Benoît & Rycx, François & Vermeylen, Guillaume, 2016. "Who Is Your Perfect Match? Educational Norms, Educational Mismatch and Firm Profitability," IZA Discussion Papers 10399, Institute of Labor Economics (IZA).
    2. Valentine Jacobs & Kevin Pineda-Hernández & François Rycx & Mélanie Volral, 2023. "Does over-education raise productivity and wages equally? The moderating role of workers’ origin and immigrants’ background," Education Economics, Taylor & Francis Journals, vol. 31(6), pages 698-724, November.
    3. Budria, Santiago, 2006. "Education and Inequality: Evidence from Spain," MPRA Paper 1098, University Library of Munich, Germany.
    4. repec:lan:wpaper:4343 is not listed on IDEAS
    5. Juan F. Jimeno & Diego Rodríguez-Palenzuela, "undated". "Youth unemployment in the OECD: Demographic shifts, labour market institutions, and macroeconomic shocks," Working Papers 2002-15, FEDEA.
    6. Neugart, Michael & Storrie, Donald, 2002. "Temporary work agencies and equilibrium unemployment," Discussion Papers, Research Unit: Labor Market Policy and Employment FS I 02-203, WZB Berlin Social Science Center.
    7. repec:lan:wpaper:4772 is not listed on IDEAS
    8. repec:lan:wpaper:4470 is not listed on IDEAS
    9. Kaya, Ezgi, 2014. "Gender Wage Gap Trends in Europe: The Role of Occupational Allocation and Skill Prices," Cardiff Economics Working Papers E2014/23, Cardiff University, Cardiff Business School, Economics Section.
    10. Juan F. Jimeno & Diego Rodríguez-Palenzuela, "undated". "Youth unemployment in the OECD: Demographic shifts, labour market institutions, and macroeconomic shocks," Working Papers 2002-15, FEDEA.
    11. Juan F. Jimeno, "undated". "Demografía, empleo, salarios y pensiones," Working Papers 2002-04, FEDEA.
    12. Florentino Felgueroso & Sergi Jiménez Martín, 2009. "The "New Growth Model". How and with Whom?," Working Papers 2009-39, FEDEA.
    13. Josep Oliver Alonso & José Luís Raymond Bara & Hector Sala Lorda, 2001. "Necesidad de formación en el mercado de trabajo español: composición del empleo y estructura productiva," Working Papers wp0117, Department of Applied Economics at Universitat Autonoma of Barcelona.

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    More about this item

    Keywords

    Crowding-out; Matching; Returns to education;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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