Wage Divergence and Asymmetries in Unemployment in a Model with Biased Technical Change

J. Muysken; M.W.J.L. Sanders; A.H. van Zon

doi:10.1023/A:1004123613889

Wage Divergence and Asymmetries in Unemployment in a Model with Biased Technical Change

J. Muysken^*
, M.W.J.L. Sanders
, A.H. van Zon

^*Corresponding author for this work

Macro, International & Labour Economics

Research output: Contribution to journal › Article › Academic › peer-review

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Abstract

In an attempt to explain the different wage and unemployment responses in mainland europe and the us to a fall in demand for low-skilled labour, we present a model with two levels of skills and two classes of goods. We analyse the response to skill-biased technical change in two distinct labour market regimes. A trade-off between wage divergence and unemployment of skilled and unskilled workers occurs. Skill-biased technical change turns out to have a different impact in both regimes, due to a different working of the chimney effect.

Original language	English
Pages (from-to)	1-12
Journal	De Economist
Volume	149
Issue number	1
DOIs	https://doi.org/10.1023/A:1004123613889
Publication status	Published - 1 Jan 2001

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Wage Divergence and Asymmetries in Unemployment in a Model with Biased Technical Change

Abstract

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