Scandinavian Working Papers in Economics

Working Papers,
Copenhagen Business School, Department of Economics

No 08-2001: The Impact of Yputh Unemployment Policy

Trine Filges and Birthe Larsen
Additional contact information
Trine Filges: Danish National Institute of Social Research, Postal: Centre for Research in Social Integration and Marginalization, The Danish National Instiute of Social Research
Birthe Larsen: Department of Economics, Copenhagen Business School, Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark

Abstract: This paper examines the impact on unemployment, unemployment distribution, wages and welfare of Youth Unemployment Programmes (YUPs). The aim of YUP is to increase the number of young people acquiring skills. We assume that the YUPs are a complete success and consequently analyse what happens when the number of skilled workers increases relatively to the number of unskilled workers. The results depend on the productivity of the skilled workers when employed in the "unskilled sector" relatively to the productivity of the unskilled worker.

Keywords: Skill; Unemployment; Search

JEL-codes: J18; J38; J68

34 pages, December 6, 2001

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