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Can Labour Supply Explain the Rise in Unemployment and Inter-Group Wage Inequality in the OECD?

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  • Wasmer, E.

Abstract

This paper investigates the consequences of labour supply changes in the OECD countries in the last decades. It is argued that changes in supply cannot be thought as homogenous: these changes involve more young and more adult female workers, that are complement with skilled men and substitute with low-wage groups (young, unskilled). Logically, these labour supply trends since the 50's increased competition between women, the young workers and the low skilled workers in some segments of the labour force.

Suggested Citation

  • Wasmer, E., 1997. "Can Labour Supply Explain the Rise in Unemployment and Inter-Group Wage Inequality in the OECD?," Papers 629, Stockholm - International Economic Studies.
    • Handle: RePEc:fth:stocin:629
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    References listed on IDEAS

    as
    1. Lawrence F. Katz & Kevin M. Murphy, 1992. "Changes in Relative Wages, 1963–1987: Supply and Demand Factors," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 35-78.
    2. Mark C. Berger, 1983. "Changes in Labor Force Composition and Male Earnings: A Production Approach," Journal of Human Resources, University of Wisconsin Press, vol. 18(2), pages 177-196.
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    5. Bean, Charles R., 1994. "European unemployment: A retrospective," European Economic Review, Elsevier, vol. 38(3-4), pages 523-534, April.
    6. Jackman, R. & Layard, R. & Nickell, S., 1996. "Combatting unemployment: is flexibility enough?," LSE Research Online Documents on Economics 47446, London School of Economics and Political Science, LSE Library.
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    8. Banerjee, Anindya & Dolado, Juan J. & Galbraith, John W. & Hendry, David, 1993. "Co-integration, Error Correction, and the Econometric Analysis of Non-Stationary Data," OUP Catalogue, Oxford University Press, number 9780198288107.
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    More about this item

    Keywords

    LABOUR SUPPLY ; WAGES ; UNEMPLOYMENT;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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