The Impact of Youth Unemployment Policy: A Shift of Workers into the Skilled Labour Force

Trine Filges and Birthe Larsen

LABOUR, 2004, vol. 18, issue 3, 379-414

Abstract: Abstract. This paper examines the impact on unemployment, wages, distribution and welfare of Youth Unemployment Programmes (YUPs). The aim of YUPs is to increase the number of young people acquiring skills and thereby reduce unemployment. We consider the assumption of a completely successful YUP, which delivers higher skills, and analyse what happens when the number of skilled workers increases relative to the number of unskilled workers. The analysis uses a search model with heterogeneous workers and jobs.

Date: 2004
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