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Skill heterogeneity and equilibrium unemployment

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  • Rebecca Riley
  • Garry Young

Abstract

Opportunities facing skilled and unskilled workers diverged over the last quarter of the twentieth century in the UK. We develop an empirical framework consistent with these trends that highlights the importance of skill heterogeneity in both wage setting and labour demand in explaining aggregate labour market outcomes. The framework enables us to quantify the macroeconomic effects of shocks that impact particularly on one group rather than another. Copyright 2007 , Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 59 (2007)
Issue (Month): 4 (October)
Pages: 702-725

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Handle: RePEc:oup:oxecpp:v:59:y:2007:i:4:p:702-725

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Cited by:
  1. Erkki Koskela, 2010. "Analysis of Labor Tax Progression under Heterogeneous Domestic Labor Markets and Flexible Outsourcing," CESifo Working Paper Series 3239, CESifo Group Munich.
  2. Koskela, Erkki, 2009. "Impacts of Labor Taxation with Perfectly and Imperfectly Competitive Domestic Labor Markets under Flexible Outsourcing," IZA Discussion Papers 4544, Institute for the Study of Labor (IZA).
  3. Koskela, Erkki & Poutvaara, Panu, 2008. "Outsourcing and Labor Taxation in Dual Labor Markets," IZA Discussion Papers 3522, Institute for the Study of Labor (IZA).
  4. Erkki Koskela & Jan König, 2009. "The Role of Profit Sharing in a Dual Labour Market with Flexible Outsourcing," CESifo Working Paper Series 2533, CESifo Group Munich.
  5. Thomas Aronsson & Erkki Koskela, 2008. "Optimal Redistributive Taxation and Provision of Public Input Goods in an Economy with Outsourcing and Unemployment," CESifo Working Paper Series 2481, CESifo Group Munich.
  6. Aronsson, Thomas & Koskela, Erkki, 2009. "Optimal Redistributive Taxation and Provision of Public Input Goods in an Economy with Outsourcing and Unemployment," IZA Discussion Papers 4196, Institute for the Study of Labor (IZA).
  7. Erkki Koskela, 2009. "Impacts of Labor Taxation with Perfectly and Imperfectly Competitive Domestic Labor Markets under Flexible Outsourcing," CESifo Working Paper Series 2852, CESifo Group Munich.
  8. Aronsson, Thomas & Koskela, Erkki, 2008. "Optimal Redistributive Taxation and Provision of Public Input Goods in an Economy with Outsourcing and Unemployment," UmeÃ¥ Economic Studies 759, Umeå University, Department of Economics.
  9. Koskela, Erkki, 2010. "Analysis of Labor Tax Progression under Heterogeneous Domestic Labor Markets and Flexible Outsourcing," IZA Discussion Papers 5313, Institute for the Study of Labor (IZA).
  10. Erkki Koskela & Panu Poutvaara, 2008. "Flexible Outsourcing and the Impacts of Labour Taxation in European Welfare States," CESifo Working Paper Series 2440, CESifo Group Munich.

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