Institutional barriers in labor markets: Examples, impacts, and policies

This paper examines the institutional biases that impede the competitive functioning of labor markets. Two contexts are considered. The first relates to Moroccan labor migrants in The Netherlands, where institutional bias distorts the competitive functioning of the labor market by downgrading the ed...

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Veröffentlicht in:Socio-economic planning sciences 2010-12, Vol.44 (4), p.193-198
Hauptverfasser: Cohen, S.I., Rettab, B.
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Rettab, B.
description This paper examines the institutional biases that impede the competitive functioning of labor markets. Two contexts are considered. The first relates to Moroccan labor migrants in The Netherlands, where institutional bias distorts the competitive functioning of the labor market by downgrading the educational returns to migrant workers and acting as a disincentive for further investment in human capital. The second relates to labor markets in Indonesia and Pakistan. Institutional bias in these two countries leads to an exaggeration of labor returns to certified education, and to over-investment in university education. We argue that such biases are fed by misinformed beliefs and group interests, and stand in the way of achieving higher growth and equity.
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subjects Bias
Competitiveness
Educational returns
Human capital
Indonesia
Institutions
Labor market
Labor market Educational returns Institutions
Labour market
Migrant workers
Netherlands
Pakistan
title Institutional barriers in labor markets: Examples, impacts, and policies
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