Title: Labor Market Segregation,Reservation Wage and “Educated Unemployment”
Abstract:We built a job-hunting model of college individuals under labor market segregation and used search theory to explain why there waseducated unemploymentin China. Conclusions show that: first,college ex...We built a job-hunting model of college individuals under labor market segregation and used search theory to explain why there waseducated unemploymentin China. Conclusions show that: first,college expansion is just an incentive ofeducated unemployment,however,the segregation of labor mar.ket and the reservation wage which is insensitive to the number of college graduates,making the market not clearing,are the root causes; second,when looking into segregated markets,jobs in public sector and mo.nopoly industries are recognized by the mainstream of society and their treatments have a strong influence on college students' reservation wage. As the wage gap between monopoly industries and competitivesector widens,the unemployment rate of college graduates will rise. Third,the emergence ofeducated unemploy.mentreducesthe opportunity cost to invest in human capital and increases the expected revenue,which en.courages college graduates to further heir tudy and causes short-run ver-education in limited regions.Read More
Publication Year: 2014
Publication Date: 2014-01-01
Language: en
Type: article
Access and Citation
Cited By Count: 1
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot