Impact of Limited Education on Employment Prospects in Advanced Economies
Title
Impact of Limited Education on Employment Prospects in Advanced Economies
Author
Solga, Heike
Research Area
Class, Status and Power
Topic
Social and Economic Inequality
Abstract
Employment and wage inequalities between educational groups in advanced economies have received much attention in economic and sociological research. Over the past 50 years, the labor market vulnerability of less‐educated workers has increased and will most probably continue to do so unless crucial interventions take place. Foundational research has identified multiple factors that contribute to rising educational disparities in employment prospects. It has focused in particular on demand‐side factors, such as skill supply–demand mismatches, changes in overall job structures, foreign trade, or institutional changes; however, most studies were based on supply‐side data. Cutting edge research has challenged some of these findings by studying recruitment processes, technological changes, and skill distributions, and by using a multidimensional concept of education. Nevertheless, the relative importance of the various factors has yet to be determined. Other key issues for future research involve including women in the analysis, explaining not only differences between educational groups but also differences within the group of less‐educated workers, and studying the impact of variation in competence‐qualification relationships on the employment prospects of less‐educated workers. Research of this nature will require more interdisciplinary cooperation between economists and sociologists and an increase in international comparative studies. Such research will enrich our understanding of how the barriers confronting less‐educated workers in the labor market can be overcome or removed.