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Qualification-Mismatch and Long-Term Unemployment in a Growth-Matching Model

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Author Info
Birk, Angela
Abstract

How does technical progress affect long-term unemployment? The relationship between long-term unemployment and the rate of growth attributable to technical progress is evaluated in a growth-matching-model with heterogeneous jobless workers and with endogenously determined long-term unemployed resulting from skill-depreciation. For innovation economies characterized by high steady-state levels of capital intensities the model shows that, due to a capitalization effect and a qualification-mismatch effect, increasing technological progress has adverse implications for long-term unemployment. Furthermore, for imitation economies with low steady-state capital intensities increasing technological progress can be either favorable or less favorable for long-term unemployment depending on whether the creative destruction effect or the capitalization effect dominates. Wie beeinflusst der technische Fortschritt die Langzeitarbeitslosigkeit? Die Beziehung zwischen Langzeitarbeitslosigkeit und der Wachstumsrate des technischen Fortschritts wird in einem Wachstums-Matching-Modell mit heterogenen Arbeitslosen und mit endogen bestimmter Langzeitarbeitslosigkeit, die auf Qualifikationsverlust zurückzuführen ist, analysiert. Für Innovationsländer, die durch hohe gleichgewichtige Kapitalintensitäten charakterisiert werden können, wird in dem Model gezeigt, dass steigender technischer Fortschritt aufgrund eines Kapitalisierungs- und eines Qualifikations-Mismatch- Effekts negative Implikationen für die Langzeitarbeitslosigkeit hat. Für Imitationsländer mit einer geringen gleichgewichtigen Kapitalintensität kann beschleunigter technischer Fortschritt positiv oder negativ auf die Langzeitarbeitslosigkeit wirken, je nachdem, ob der Effekt der kreativen Zerstörung oder der Kapitalisierungseffekt dominiert.

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Paper provided by Hamburg Institute of International Economics in its series Discussion Paper Series with number 26181.

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Date of creation: 2001
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Handle: RePEc:ags:hiiedp:26181

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Keywords: long-term unemployment; mismatch; growth; search; matching; Labor and Human Capital; E24; J41; O41;

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Burgess, Simon M., 1994. "Matching models and labour market flows," European Economic Review, Elsevier, vol. 38(3-4), pages 809-816, April. [Downloadable!] (restricted)
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  4. Ljungqvist, Lars & Sargent, Thomas J., 1995. "The Swedish unemployment experience," European Economic Review, Elsevier, vol. 39(5), pages 1043-1070, May. [Downloadable!] (restricted)
  5. Aghion, Philippe & Howitt, Peter, 1994. "Growth and Unemployment," Review of Economic Studies, Blackwell Publishing, vol. 61(3), pages 477-94, July. [Downloadable!] (restricted)
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  6. Marek GÕra & Christoph M. Schmidt, 1998. "Long-term unemployment, unemployment benefits and social assistance: The Polish experience," Empirical Economics, Springer, vol. 23(1/2), pages 55-85. [Downloadable!] (restricted)
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  7. Acemoglu, Daron, 1995. "Public Policy in a Model of Long-Term Unemployment," Economica, London School of Economics and Political Science, vol. 62(246), pages 161-78, May. [Downloadable!] (restricted)
  8. Blanchard, Olivier Jean & Diamond, Peter A, 1994. "Ranking, Unemployment Duration, and Wages," Review of Economic Studies, Blackwell Publishing, vol. 61(3), pages 417-34, July. [Downloadable!] (restricted)
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  9. Eran Yashiv, 2000. "The Determinants of Equilibrium Unemployment," American Economic Review, American Economic Association, vol. 90(5), pages 1297-1322, December. [Downloadable!] (restricted)
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  10. Mortensen, Dale T & Pissarides, Christopher A, 1994. "Job Creation and Job Destruction in the Theory of Unemployment," Review of Economic Studies, Blackwell Publishing, vol. 61(3), pages 397-415, July. [Downloadable!] (restricted)
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  11. Marimon, Ramon & Zilibotti, Fabrizio, 1997. "Unemployment versus Mismatch of Talents: Reconsidering Unemployment Benefits," CEPR Discussion Papers 1769, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  17. Bean, Charles & Pissarides, Christopher, 1993. "Unemployment, consumption and growth," European Economic Review, Elsevier, vol. 37(4), pages 837-854, May. [Downloadable!] (restricted)
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  18. Nickell, Stephen, 1999. "Product markets and labour markets1," Labour Economics, Elsevier, vol. 6(1), pages 1-20, March. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Birk, Angela, 2001. "Long-Term Unemployment and Subsidizing Vacancies in a Growth-Matching Model," Discussion Paper Series 26194, Hamburg Institute of International Economics. [Downloadable!]
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