Recent data suggest that the fortunes of unskilled workers in developed countries improved during the 1990s, after deteriorating significantly during the 1980s. Such a trend could be explained by a faster decline in the relative supply of unskilled labour, a slower decline in the relative demand for unskilled labour, or a shift in labour market institutions. This paper argues that the improvement almost always reflected a slower decline in relative demand. Further research will be required to discover why the decline in demand for unskilled labour decelerated.
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Length: 105 pages Date of creation: Jun 2001 Date of revision: Publication status: Published in Handle: RePEc:kee:keeldp:2001/06
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Find related papers by JEL classification: J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
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