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Job Differentiation vs. Unemployment

Listed author(s):
  • Amine Samir

    ()

    (Université du Québec en Outaouais and CIRANO, 283 boul. Alexandre-Taché, C.P. 1250, succursale Hull, Gatineau, Québec, Canada, J8X 3X7, and CIRANO, Montréal, Canada)

We use a matching model in which the horizontal job differentiation results from the rationale response of firms to the state of the labor market. We show that a decrease in the labor market tightness gives firms an incentive to raise the differentiation degree of jobs. Comparative statics suggests that an increase in unemployment benefits and in the minimum wage improves productivity of skilled workers by making jobs more differentiated, and leads to a raise in unemployment rate.

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File URL: https://www.degruyter.com/view/j/revecp.2013.13.issue-1/v10135-012-0014-6/v10135-012-0014-6.xml?format=INT
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Article provided by De Gruyter Open in its journal Review of Economic Perspectives.

Volume (Year): 13 (2013)
Issue (Month): 1 (March)
Pages: 30-42

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Handle: RePEc:vrs:reoecp:v:13:y:2013:i:1:p:30-42:n:2
Contact details of provider: Web page: http://www.degruyteropen.com

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