This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Labour market dynamics in a heterogeneous market

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Gorter, Cees (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)
Larquier, Guillemette de
Abstract

This paper develops a flow model in a dual labour market with heterogeneous workers and heterogeneous jobs that allows for upward mobility or promotion flows via the internal market and demotion or deskilling flows through the state of unemployment. Dynamic impulse-responses analyses are used to examine the effects of labour market policies that aim to generate institutional changes in the wage bargaining process, make job creation less costly or job matching more efficiently to reduce unemployment, and increase competitiveness through a rise in labour productivity. We find that the usual trade-off between wages and employment shows up clearly as a result of changes in bargaining power. Moreover, the short-run and long-run effects on unemployment of active labour market policy instruments differ considerably dependent on which segment of the labour market is influenced initially. Finally, unemployment among workers without experience (skills) goes down most strongly when productivity gains are not directed to them directly, but - instead - realized for workers in the primary segment of the labour market.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: ftp://zappa.ubvu.vu.nl/19990048.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Free University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number 0048.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length:
Date of creation: 1999
Date of revision:
Handle: RePEc:dgr:vuarem:1999-48

Contact details of provider:
Web page: http://www.econ.vu.nl

For technical questions regarding this item, or to correct its listing, contact: (R. Dam).

Related research
Keywords:

Find related papers by JEL classification:
J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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. F.A.G. den Butter & M. van Dijk, 1997. "The Pace of Structural Change, Cyclical Shocks and Unemployment Dynamics," Tinbergen Institute Discussion Papers 97-053/3, Tinbergen Institute. [Downloadable!]
  2. Gautier, P.A. & Butter, F.A.G. den, 1995. "Structural change and wage formation in an empirical flow model for the labour market," Serie Research Memoranda 0039, Free University Amsterdam, Faculty of Economics, Business Administration and Econometrics. [Downloadable!]
  3. Olivier Jean Blanchard & Peter Diamond, 1990. "The Beveridge Curve," NBER Reprints 1405, National Bureau of Economic Research, Inc.
    Other versions:
  4. Olivier Jean Blanchard & Peter A. Diamond, 1991. "The Aggregate Matching Function," NBER Working Papers 3175, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
Full references

Statistics
Access and download statistics

Did you know? Authors registered on the RePEc Author Service receive monthly emails with details about downloads and abstract views of their works.

This page was last updated on 2008-7-30.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.