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The causes of youth labour market problems in Spain: out , institutions, or technology shifts?

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1999-07
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An important future of Spanish unemployment, besides being high, is that it has been and still is very unevenly distributed: female and youth unemployment rates have been about 10 and 20 percentage points higher, respectively than aggregate unemployment. The fact that those unemployment differentials have remained more or less constant over the 1980s and 1990s constitutes a puzzle given that there has been a very rapid educational upgrading since the mid- 1980s which has mostly affected precisely females and young workers. In this paper we address that puzzle by using an explanation based on "crowding out" of lower educated workers by higher educated ones who, when searching of frictions exist, accept temporary simple jobs and continue searching for more complex jobs which pay a higher wage.
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Search models, Education, technological change
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