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We test the basic assumption underlying the job competition and crowding out hypothesis: that employers always prefer higher educated to lower educated individuals. To this end, we conduct a randomised field experiment in which duos of fictitious applications by bachelor and master graduates are...
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liquidity constraints. The model generates underemployment in equilibrium: workers are employed in jobs for which they are over …-qualified. Subsidizing education can decrease the returns to human capital investment, increase the underemployment rate, and decrease the … unemployment rate. I calibrate the model to the U.S. economy and find the aggregate supply of human capital and underemployment …
Persistent link: https://www.econbiz.de/10013213966
liquidity constraints. The model generates underemployment in equilibrium: workers are employed in jobs for which they are over …-qualified. Subsidizing education can decrease the returns to human capital investment, increase the underemployment rate, and decrease the … unemployment rate. I calibrate the model to the U.S. economy and find the aggregate supply of human capital and underemployment …
Persistent link: https://www.econbiz.de/10013312764
This paper studies how linear tax and education policy should optimally respond to skill-biased technical change (SBTC). SBTC affects optimal taxes and subsidies by changing i) direct distributional benefits, ii) indirect redistributional effects due to wage-(de)compression, and iii) education...
Persistent link: https://www.econbiz.de/10012404588
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In recent decades most developed countries have experienced an increase in income inequality. In this paper, we use an equilibrium search framework to shed additional light on what is causing an income distribution to change. The major benefit of the model is that it can accommodate shocks to...
Persistent link: https://www.econbiz.de/10003941761
Dass die Erklärung von Langzeitarbeitslosigkeit ein überaus aktuelles Thema ist, zeigt der starke Anstieg der Langzeitarbeitslosigkeit in den Industrieländern seit Mitte der 70er Jahre. Die Erhöhung der Langzeitarbeitslosigkeit bei gleichzeitigem Wirtschaftswachstum - sowohl in einer...
Persistent link: https://www.econbiz.de/10011402136
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This paper uses the approach in the under/over education literature to analyze the extent of matching of educational level to occupational attainment among adult native born and foreign born men in the U.S., using the 2000 Census. Overeducation is found to be more common among recent labor...
Persistent link: https://www.econbiz.de/10003540026