Taxi drivers with a PhD: trickle down or crowding-out for lower educated workers in Dutch cities?

Roderik Ponds (), Gerard Marlet, Clemens van Woerkens and Harry Garretsen

Cambridge Journal of Regions, Economy and Society, 2016, vol. 9, issue 2, 405-422

Abstract: Attracting higher educated workers is often seen as a means to stimulate employment in cities in general, leading to lower unemployment for the lower educated, the ‘trickle-down’ effect. However, lower educated workers may also experience crowding-out effects if these higher educated inhabitants accept jobs below their educational level. Based on an empirical analysis of a cross-section of Dutch cities, we find that these crowding-out effects indeed seem to occur. This implies that a trickle-down strategy cannot be seen as a panacea by urban policymakers for the problem of high unemployment amongst lower educated workers.

Date: 2016
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