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Spanish Unemployment Persistence and the Ladder Effect

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Author Info

  • Fabrice Collard

    (CNRS-GREMAQ)

  • Raquel Fonseca

    ()
    (CSEF, University of Salerno)

  • Rafael Muñoz

    (IRES, Université Catholique de Louvain)

Abstract

This paper aims to examine to what extent a "ladder" e.ect may contribute to explain changes in unemployment in Spain. The "ladder" e.ect arises when highly-skilled workers who do not find a job that matches their skills, accept jobs that were previously occupied by less qualified staff. We develop a dynamic general equilibrium model. The model is then calibrated for the Spanish economy. Our results replicate the observed decline in the ratio of high to low-skilled vacancies, and explain how firms substitute high for low-skilled employment. These results also suggest that in the Spanish case, ladder e.ect can be better explained by increases in training costs interpreted as a biased-shock against low-skilled workers.

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Bibliographic Info

Paper provided by Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy in its series CSEF Working Papers with number 106.

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Date of creation: 01 Oct 2003
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Handle: RePEc:sef:csefwp:106

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Keywords: Matching models; low-skilled unemployment; mismatch;

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References

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  1. Paul Krugman, 1994. "Past and prospective causes of high unemployment," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, issue Jan, pages 49-98.
  2. Dolado, Juan J. & Garcia-Serrano, Carlos & Jimeno, Juan Francisco, 2001. "Drawing Lessons From the Boom of Temporary Jobs in Spain," CEPR Discussion Papers 2884, C.E.P.R. Discussion Papers.
  3. Ours, J.C. van & Ridder, G., 1995. "Job Matching and Job Competition: Are Lower Educated Workers at the Back of Job Queues?," Open Access publications from Tilburg University urn:nbn:nl:ui:12-142162, Tilburg University.
  4. van Ours, J. C. & Ridder, G., 1995. "Job matching and job competition: Are lower educated workers at the back of job queues?," European Economic Review, Elsevier, vol. 39(9), pages 1717-1731, December.
  5. Andolfatto, David, 1996. "Business Cycles and Labor-Market Search," American Economic Review, American Economic Association, vol. 86(1), pages 112-32, March.
  6. Luis A. Puch & Omar Licandro, 1997. "Are there any special features in the Spanish business cycle?," Investigaciones Economicas, Fundación SEPI, vol. 21(2), pages 361-394, May.
  7. Pieter A. Gautier, 1999. "Unemployment and Search Externalities in a Model with Heterogeneous Jobs and Heterogeneous Workers," Tinbergen Institute Discussion Papers 99-075/3, Tinbergen Institute.
  8. Boucekkine, Raouf, 1995. "An alternative methodology for solving nonlinear forward-looking models," Journal of Economic Dynamics and Control, Elsevier, vol. 19(4), pages 711-734, May.
  9. Carlos Díaz-Moreno & José E. Galdón-Sánchez, 2000. "Job creation, job destruction and the dynamics of Spanish firms," Investigaciones Economicas, Fundación SEPI, vol. 24(3), pages 545-561, September.
  10. Dolado, Juan J. & Felgueroso, Florentino & Jimeno, Juan F., 2000. "Youth labour markets in Spain: Education, training, and crowding-out," European Economic Review, Elsevier, vol. 44(4-6), pages 943-956, May.
  11. F Green & Steven McIntosh & Anna Vignoles, 1999. "Overeducation and Skills - Clarifying the Concepts," CEP Discussion Papers dp0435, Centre for Economic Performance, LSE.
  12. Nickell, Stephen & Bell, Brian, 1995. "The Collapse in Demand for the Unskilled and Unemployment across the OECD," Oxford Review of Economic Policy, Oxford University Press, vol. 11(1), pages 40-62, Spring.
  13. Pieter A. Gautier, 1999. "Unemployment and Search Externalities in a Model with Heterogeneous Jobs and Heterogeneous Workers," Tinbergen Institute Discussion Papers 99-075/3, Tinbergen Institute.
  14. repec:dgr:uvatin:2099075 is not listed on IDEAS
  15. DREZE, Jacques H. & SNEESSENS, Henri, 1994. "Technical Development, Competition from Low-Wage Economies and Low-Skilled Unemployment," CORE Discussion Papers 1994036, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  16. Ezequiel Uriel Jiménez & Pilar Beneito López & Javier Ferri Carreres & María Luisa Moltó Carbonell, 1996. "Desajuste educativo y formación laboral especializada: efectos sobre los rendimientos salariales," Working Papers. Serie EC 1996-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
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Cited by:
  1. Sergio Destefanis & Raquel Fonseca, 2006. "Labour-Market Reforms and the Beveridge Curve: Some Macro Evidence for Italy," Working Papers 436, RAND Corporation Publications Department.
  2. E. Moreno-Galbis & H.R. Sneessens, 2007. "Low-skilled unemployment, capital-skill complementarity and embodied technical progress," Recherches économiques de Louvain, De Boeck Université, vol. 73(3), pages 241-272.
  3. Pierrard, Olivier & Sneessens, Henri R., 2003. "Low-Skilled Unemployment, Biased Technological Shocks and Job Competition," IZA Discussion Papers 784, Institute for the Study of Labor (IZA).
  4. Eva, MORENO-GALBIS, 2004. "Unemployment and Endogenous Growth with Capital-Skill Complementarity," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2004001, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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