Our aim is to explain why the pattern of relative unemployment rates by education groups was non monotonic in most of the OECD countries. In a two-sector matching model, a simple unexpected productivity shock biased against unskilled labor can replicate the observed dynamics. Effects of skill-biased shocks can be related to inequality in the distribution of wealth.
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Paper provided by Universite Aix-Marseille III in its series G.R.E.Q.A.M. with number
00a16.
Length: 21 pages Date of creation: 2000 Date of revision: Handle: RePEc:fth:aixmeq:00a16
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Find related papers by JEL classification: J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search