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Title: Educational Expansion, Technological Change and Youth Unemployment

Citation Type: Conference Paper

Publication Year: 2008

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Abstract: The aim of the study is to describe and explain the evolution of education-dependent unemployment risks for young people in 20 European countries for the period from 1992 to 2005. We try to assess whether this period is characterized by a general rise in inequality in the distribution of unemployment risk across education groups. Furthermore, we test to what extent structural changes, i.e. technological change, educational expansion and globalization, are associated with observed changes in inequality. Over the period of observation, we find that polarization of unemployment risks between tertiary and lower secondary educated can be observed in Germany and the Czech Republic. For the other countries, trends are heterogeneous. Apart from the business cycle, tertiary-level educational expansion is associated with higher unemployment rates among tertiary educated, as well as higher unemployment among women with upper as well as lower secondary education. We attribute the latter finding to crowding out processes. Technological change, measured by the spread of personal computers, is associated with higher youth unemployment, especially for less educated, which implies a polarization of unemployment risks. Compared to technological change, globalization does not have a strong effect on youth unemployment.

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Authors: Noelke, Clemens

Conference Name: ISA RC28 Conference

Publisher Location: Stanford University, Palo Alto, USA

Data Collections: IPUMS CPS

Topics: Aging and Retirement, Education, Labor Force and Occupational Structure

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