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Education and the Labour Market

Labour Market Participation, Employment and Unemployment

The first issue is the extent to which knowledge acquired within the education system is offered on the labour market. Especially for women and mothers, it is well-known that non-participation in the labour market is a widespread phenomenon, particularly in Western Germany. The question therefore arises how non-participation affects the composition of the labour force in terms of qualification groups.

When individuals are willing to offer their labour skills they might be unable to find a job. A further issue is therefore unemployment. Analysing the relationship between educational qualifications and unemployment should help to identify the strengths and weaknesses of different parts of the education system. It also allows the identification of the qualification groups which are hit most by unemployment and which remedial measures should be taken. In this area, special attention is paid to the dynamics of unemployment, in particular to the transition from employment to unemployment and to the duration of subsequent unemployment. Moreover, the problem of youth unemployment is of particular interest, given that early unemployment experience is known to have consequences on the rest of the working career.

If individuals find a job, it is interesting to analyse the characteristics of this employment and how these are affected by education. A further objective of research at ZEW is to analyse the type of occupation education leads to and the degree of occupational mobility. Moreover, further analyses focus on specific segments of the labour market, such as the service sector, and analyse the impact of changes in labour demand.

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