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Economic Effects of Continuous Training

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Labor Markets and Social Security

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Abstract

“The unemployment picture in Europe is bleak. In the European OECD countries, the unemployment rate has moved up from 2.6 percent in 1970 to nearly 11 percent in 1996, ratcheting upward in the 1970s and the early 1980s and again in the mid-1990s. The long-term unemployment rate (relating to those who are unemployed for one year or more) has also risen sharply from 0.9 percent in 1979 to 6.6. percent in 1994. Job growth has been slow” (SIEBERT, 1996). Europe’s experience with unemployment since 1970 differs markedly from that of the United States where the unemployment rate is much lower than in the European countries. But the U.S. has faced another severe problem over the past two decades. Though the U.S. has seen no sustained increase in the unemployment rate, it has experienced a strong increase in earnings dispersion. Taking a closer look at the situation, one finds that it is mainly the employment and earnings position of unskilled workers which has deteriorated over this interval. While in the U.S., the wages of unskilled workers have decreased relative to those of skilled workers, in Europe it is the relative unemployment of unskilled workers that has been adversely affected.

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Authors
  1. Lutz Bellmann
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  2. Ute Leber
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Editors and Affiliations

  1. Department of Economics, Moore School of Business, University of South Carolina, 1705 College Street, 29 208, Columbia, SC, USA

    John T. Addison

  2. University of Potsdam, August-Bebel-Straße 89, 14482, Potsdam, Germany

    Paul J. J. Welfens (Jean-Monnet-Professor for European Economic Integration President of EIIW) (Jean-Monnet-Professor for European Economic Integration President of EIIW)

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Bellmann, L., Leber, U. (2004). Economic Effects of Continuous Training. In: Addison, J.T., Welfens, P.J.J. (eds) Labor Markets and Social Security. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-24780-7_14

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  • DOI: https://doi.org/10.1007/978-3-540-24780-7_14

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-53462-1

  • Online ISBN: 978-3-540-24780-7

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