Active Labour Market Programmes, Education and Unemployment

Yoshihiko Fukushima ()
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Yoshihiko Fukushima: Dept. of Economics, Stockholm University, Postal: Department of Economics, Stockholm University, S-106 91 Stockholm, Sweden, http://www.ne.su.se/

No 2001:11, Research Papers in Economics from Stockholm University, Department of Economics

Abstract: The paper formalises the interaction between active labour market programmes and ordinary higher education in a general equilibrium framework. Both education in prorgammes and ordinary higher education serve to increase the supply of high-skilled labour. The model features a dual labour market where wages and employment are determined by labour-demand and wage-setting schedules. Programmes are shown to have crowding-out effects on both regular employment and the number of students in ordinary higher education. Numerical calibrations of the model show that social welfare is lower in an economy with educational programmes than in an economy without such programmes.

Keywords: Active labour market programme; education; unemployment; dual labour market; welfare (search for similar items in EconPapers)
JEL-codes: J31 J41 J64 J68 R13 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2001-06-12
New Economics Papers: this item is included in nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:sunrpe:2001_0011

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