Have the Relative Employment Prospects for the Low-Skilled Deteriorated After All?
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Røed, Knut og Morten Nordberg
Number in series: 19
With the aid of Norwegian register data, the paper investigates whether or not the relative unemployment propensity for the low-skilled has increased during the 1990’s. Two alternative notions of ‘low skills’ are employed; i) low education, and ii) low previous earnings, conditioned on education and work experience. According to the standard education-based measure, we find that unemployment propensity has not at all developed unfavourably for the low-skilled. According to the earnings based measure, it has. We uncover a steady and significant deterioration of employment prospects for persons with particularly low previous earnings relative to others with similar formal qualifications.
Skill-biased technical change, relative unemployment rates
Project:Oppdragsgiver: Norges forskningsråd
Frisch prosjekt: 1203 - Sorting, exposed groups and labour market programmes