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Avoiding a Future of Unemployment and Low Wages: What Opportunities Are Open to Young and Unskilled Workers?

Levy Economics Institute Working Paper No. 100

81 Pages Posted: 20 Apr 1999  

Robert Hutchens

Cornell University - School of Industrial and Labor Relations; Bard College - The Levy Economics Institute; IZA Institute of Labor Economics

Date Written: November 1993

Abstract

Given the continuing shift in labor demand from low-skilled to higher-skilled occupations, Hutchens queries to the fate of the segment of the labor force that does not possess these skills. In order to answer the question, he examines the viability and access to three possible paths that a person with limited skills might take in order to avoid unemployment and/or low wages: (1) obtaining additional formal schooling; (2) obtaining a job that provides secure employment at "good" wages; or (3) procuring employment in a position that provides skills or training, thereby opening the door to good future jobs. He finds that (1) the majority of individuals did not undertake any additional formal schooling or training, and that the younger cohort was less likely to receive employer-provided training; (2) with the possible exception of employer-provided training among the younger cohort, failure to pursue additional training did not seem to carry a large penalty; (3) only weak evidence that industry and occupation in the early jobs were tied to career success later in life; and (4) attaining full-year employment and above-poverty earnings was more difficult among the younger cohort.

JEL Classification: J31

Suggested Citation

Hutchens, Robert, Avoiding a Future of Unemployment and Low Wages: What Opportunities Are Open to Young and Unskilled Workers? (November 1993). Levy Economics Institute Working Paper No. 100. Available at SSRN: https://ssrn.com/abstract=138649 or http://dx.doi.org/10.2139/ssrn.138649

Robert M. Hutchens (Contact Author)

Cornell University - School of Industrial and Labor Relations ( email )

Ithaca, NY 14853-3901
United States
607-255-2749 (Phone)

Bard College - The Levy Economics Institute

Blithewood
Annandale-on-Hudson, NY 12504
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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