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generates a negative effect on wages and an increase in the unemployment rate--and skilled workers, who benefit from higher … wages and lower unemployment. These changes in the labor market affect the government's revenue, resulting, in the long term …
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This paper provides evidence that finishing school when labour markets are weak leads to poor subsequent labour market prospects, particularly those leaving school at younger ages. Using administrative register data from Denmark, we find that these scarring effects are larger and more persistent...
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