Crowding Out of Disadvantaged Young Adults in Germany

Background Matters Depending on Local Labour Market

Bibliographic Data

ID2236022
AuthorsWouter Zwysen (0000-0001-6304-4762, University of Essex, corresponding author)
Year2016
Volume32
Issue5
Pages662-674
Publication date2016-10-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEuropean Sociological Review (JOURNAL)
Journal identifiersISSN: 0266-7215 • E-ISSN: 1468-2672
PublisherOxford University Press (PUBLISHER • GB)
DOI10.1093/esr/jcw023
OpenAlexW2416899086
LanguageEN
Citations received15
References cited29

Research on socio-economic mobility focuses on how background affects later labour market outcomes. Growing up in a disadvantaged household does not always lead to the same outcomes however, and the extent to which this matters depends on the local labour market. Using multilevel models on the German Socio-Economic Panel Study, this article shows that disadvantaged young adults (16–35 years old) are more affected by the business cycle than their similarly educated counterparts from more advantaged backgrounds. We propose that a disadvantaged background lowers desirability on the labour market, which matters more to employers as the labour market worsens. When the local labour market is slack, disadvantaged young adults get crowded out of good jobs by their more advantaged but similarly qualified peers. Among the higher qualified, this means the disadvantaged work on lower paying jobs, while those who are less educated are most at risk of unemployment. These results are robust to using different specifications. As the early career has long-term effects, the conditions during which young adults enter the labour market can play a large role in their labour market outcomes and can affect inequality by background overall.

Demographic economics · Disadvantage · Disadvantaged · Economic growth · Economics · Inequality · Labour economics · Political science · Unemployment · Intergenerational and Educational Inequality Studies · Labor market dynamics and wage inequality · Youth Education and Societal Dynamics

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