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Endogenous Skilled-biased Technological Change and Matching Unemployment

  • Manfred Stadler

    ()

  • Rüdiger Wapler

    ()

This paper presents a general-equilibrium model of endogenous skilled-biased technological change and matching unemployment in a disaggregated economy. We simultaneously endogenise both the direction and pace of technological change as well as the unemployment rates. We show that an increase in the supply of high-skilled labour can explain skilled-biased technological change, a reduction in high-skilled unemployment and a rise in the high-skilled wage differential. In accordance with convincing empirical evidence, the high-skilled suffer from shorter and fewer spells of unemployment.

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File URL: http://hdl.handle.net/10.1007/s00712-003-0014-1
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Article provided by Springer in its journal Journal of Economics.

Volume (Year): 81 (2004)
Issue (Month): 1 (01)
Pages: 1-24

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Handle: RePEc:kap:jeczfn:v:81:y:2004:i:1:p:1-24
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