Full Citation

Title: Unintended Displacement Effects of Youth Training Programs in a Directed Search Model

Citation Type: Journal Article

Publication Year: 2019

ISBN:

ISSN:

DOI: 10.1007/s12122-019-09284-1

NSFID:

PMCID:

PMID:

Abstract: The rise in the productivity of inexperienced young workers suggests a positive partial equilibrium effect of youth training programs on employment. However, in a general equilibrium context, displacement effects that impact other groups of workers could also arise. We build a directed search model to study the unintended displacement effects of youth training programs. We calibrate the model to match data from the US labor market. The model is then used to simulate a policy experiment that resembles a training program that raises the productivity of a targeted group of low-skilled and inexperienced agents. Our counterfactual analysis shows that the policy indeed triggers displacement effects. Consequently, these unintended displacement effects must be taken into account in the evaluation of youth training programs.

Url: https://link.springer.com/article/10.1007/s12122-019-09284-1

User Submitted?: No

Authors: Gómez, Marcos

Periodical (Full): Journal of Labor Research

Issue: 2

Volume: 40

Pages: 230-247

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure, Other

Countries: