Can skill-biased technological change compress unemployment rate differentials across education groups? |
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| Authors: | Bruno Decreuse |
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| Institution: | (1) GREQAM Université de la Méditerranée 2, rue de la charité, 13002 Marseille, France (Fax: +33-4-91-90-02-27; e-mail: decreuse@ehess.cnrs-mrs.fr), FR |
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| Abstract: | Our aim is to explain why the pattern of relative unemployment rates by education groups was non monotonic in most of the
OECD countries. In a two-sector matching model, a simple unexpected productivity shock biased against unskilled labor can
replicate the observed dynamics. Demographic effects of skill-biased shocks can be related to inequality in the distribution
of wealth.
Received: 27 April 1999/Accepted: 08 June 2000 |
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| Keywords: | JEL classification: J21 J64 |
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