Unintended Displacement Effects of Youth Training Programs in a Directed Search Model

Gómez M.; Parro F.

Abstract

The rise in the productivity of inexperienced young workers suggests a positive partial equilibrium effect of youth training programs on employment. However, in a general equilibrium context, displacement effects that impact other groups of workers could also arise. We build a directed search model to study the unintended displacement effects of youth training programs. We calibrate the model to match data from the US labor market. The model is then used to simulate a policy experiment that resembles a training program that raises the productivity of a targeted group of low-skilled and inexperienced agents. Our counterfactual analysis shows that the policy indeed triggers displacement effects. Consequently, these unintended displacement effects must be taken into account in the evaluation of youth training programs.

Más información

Título según WOS: Unintended Displacement Effects of Youth Training Programs in a Directed Search Model
Título según SCOPUS: Unintended Displacement Effects of Youth Training Programs in a Directed Search Model
Título de la Revista: JOURNAL OF LABOR RESEARCH
Volumen: 40
Número: 2
Editorial: Springer
Fecha de publicación: 2019
Página de inicio: 230
Página final: 247
Idioma: English
DOI:

10.1007/s12122-019-09284-1

Notas: ISI, SCOPUS