Many countries around the world have experienced an unprecedented increase in the education levels of their populations in recent years. Around half of all young people in Canada, Japan, and Israel complete tertiary education. However, despite huge investment in education, a significant proportion of the workforce in some countries still has very low levels of literacy and numeracy, with negative consequences for future earnings and employment.
“…However, the estimates of the wage premium associated with having better basic skills vary substantially across countries. For example, in eight countries the wage premium is below 15% but in six countries it is above 21%. The US shows the highest wage premium from having better numeracy skills at nearly 30%.”
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Opinion: Minimum wages hurt young people
Charlene Marie Kalenkoski
One purported purpose of minimum wage legislation is to increase the incomes of unskilled workers. However, research using US data, plus the bulk of the economic literature, shows that minimum wages usually reduce the job opportunities available to such workers. Youth employment is reduced by 2–3% in response to a 10% increase in the minimum wage. While some workers are lucky enough not to have their hours cut or lose their jobs when minimum wages are imposed or increased, some are not so fortunate. Read the full commentary.
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IZA/CEPR Annual Symposium in Labour Economics 2018, September 20-21. This year's symposium features a keynote talk by Jesse Rothstein (University of California, Berkeley and IZA). The goal of the symposium is to provide a forum for high-quality work in labor economics and to bring together economists in the field from across Europe as well as key researchers from outside the region.
3rd IZA Workshop: The Economics of Education, October 4-6. The aim of the workshop is to bring together about 30 researchers working on the economics of education, in particular on the theme "Education and the Labor Market."