Real Wages, Skill Mismatch and Unemployment Persistence
AbstractWe develop a model of equilibrium unemployment with endogenous real wages and productivity. We use a framework with explicit quantity constraints and aggregation over micromarkets to derive a Beveridge curve and discuss the relationship between shifts in the Beveridge curve and equilibrium unemployment. We also distinguish skilled and unskilled labor, so that shifts in the aggregate UV-curve can be the outcome of either frictions on the skilled labor market or skill mismatch. Frictions are assumed to be exogenous and are estimated by a linear trend. Skill mismatch is endogenous and depends, a.o., on the skilled/unskilled relative wage. There is a tight relationship and interaction between skill mismatch and equilibrium unemployment. We estimate the model on French annual data, over the period 1962-89. We exploit these results to propose tentative explanations of observed unemployment rises and Beveridge curve shifts, and to discuss a few economic policy options .
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1994050.
Date of creation: 01 Oct 1994
Date of revision:
Contact details of provider:
Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)
Fax: +32 10474304
Web page: http://www.uclouvain.be/core
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Xavier Timbeau & Eric Heyer, 2000.
"35 heures: réduction réduite,"
Sciences Po publications
info:hdl:2441/1646, Sciences Po.
- Nicolas CARNOT & Alain QUINET, 2003. "Enrichissement de la croissance en emploi et productivité," Discussion Papers (REL - Recherches Economiques de Louvain) 2003014, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Falk, Martin & Koebel, Bertrand M., 1997. "The Demand of Heterogeneous Labour in Germany," ZEW Discussion Papers 97-28, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Ochsen, Carsten, 2004. "On the Measurement of Mismatch," Thuenen-Series of Applied Economic Theory 44, University of Rostock, Institute of Economics.
- Nicolas Carnot & Alain Quinet, 2003. "Enrichissement de la croissance en emploi et productivité," Recherches économiques de Louvain, De Boeck Université, vol. 69(1), pages 97-118.
- repec:ebl:ecbull:v:30:y:2010:i:1:p:374-382 is not listed on IDEAS
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS).
If references are entirely missing, you can add them using this form.