Real Wages, Skill Mismatch and Unemployment Persistence
Abstract
We 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 Info
If 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 Info
Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1994050.Length:
Date of creation: 01 Oct 1994
Date of revision:
Handle: RePEc:cor:louvco:1994050
Contact details of provider:
Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)
Phone: 32(10)474321
Fax: +32 10474301
Email:
Web page: http://www.uclouvain.be/core
More information through EDIRC
Related research
Keywords:References
No references listed on IDEASYou can help add them by filling out this form.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Carsten Ochsen, 2004.
"On the Measurement of Mismatch,"
Thuenen-Series of Applied Economic Theory
44, University of Rostock, Institute of Economics, Germany.
- Carsten Ochsen, 2009. "On the measurement of mismatch," Applied Economics Letters, Taylor and Francis Journals, vol. 16(4), pages 405-409.
- 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).
- 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.
- 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.
- repec:ebl:ecbull:v:30:y:2010:i:1:p:374-382 is not listed on IDEAS
- Cahuc, P. & Saint-Martin, A. & Zylberberg, A., 2001. "The consequences of the minimum wage when other wages are bargained over," European Economic Review, Elsevier, vol. 45(2), pages 337-352, February.
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:cor:louvco:1994050For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.