TY - JOUR
T1 - Education and Unemployment in Israel, 1976-1994: Reducing the Anomaly
T2 - Reducing the Anomaly
AU - Weisberg, Jacob
AU - Meltz, Noah M.
N1 - Copyright:
Copyright 2018 Elsevier B.V., All rights reserved.
PY - 1999/1/1
Y1 - 1999/1/1
N2 - In industrialized economies, unemployment rates are inversely related to education levels. Data from 1963 to 1994 show that Israel is an anomaly exhibiting an inverted U-shaped relationship. Workers with 9-12 years of schooling consistently experienced a higher level of unemployment than the schooling groups with less and more education. Multivariate regression analysis of data for Israel during the 1976-1994 period indicates that this inverted U-shaped relationship is moderating. The national unemployment rate and a time trend variable had positive and significant effects tending to strengthen the inverted U-shaped relationship. However, an increase in the unemployment rate within the 0-8 education group relative to the 9-12 group and a decline in the labour force participation rate of the 0-8 group overrode these factors, resulting in a flattening of the inverse relationship. The major factor responsible for the anomaly in the education-unemployment relationship in Israel appears to be government policies intended to protect low-educated immigrants with large families. A reduction in government support over recent years seems to have increased the exposure of the least educated to labour market forces.
AB - In industrialized economies, unemployment rates are inversely related to education levels. Data from 1963 to 1994 show that Israel is an anomaly exhibiting an inverted U-shaped relationship. Workers with 9-12 years of schooling consistently experienced a higher level of unemployment than the schooling groups with less and more education. Multivariate regression analysis of data for Israel during the 1976-1994 period indicates that this inverted U-shaped relationship is moderating. The national unemployment rate and a time trend variable had positive and significant effects tending to strengthen the inverted U-shaped relationship. However, an increase in the unemployment rate within the 0-8 education group relative to the 9-12 group and a decline in the labour force participation rate of the 0-8 group overrode these factors, resulting in a flattening of the inverse relationship. The major factor responsible for the anomaly in the education-unemployment relationship in Israel appears to be government policies intended to protect low-educated immigrants with large families. A reduction in government support over recent years seems to have increased the exposure of the least educated to labour market forces.
UR - http://www.scopus.com/inward/record.url?scp=345778650&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/record.url?scp=0345778650&partnerID=8YFLogxK
U2 - 10.7202/051268ar
DO - 10.7202/051268ar
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VL - 54
SP - 673
EP - 691
JO - Relations Industrielles
JF - Relations Industrielles
IS - 4
ER -