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Qualification-Mismatch and Long-Term Unemployment in a Growth-Matching Model

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  • Birk, Angela

Abstract

How does technical progress affect long-term unemployment? The relationship between long-term unemployment and the rate of growth attributable to technical progress is evaluated in a growth-matching-model with heterogeneous jobless workers and with endogenously determined long-term unemployed resulting from skill-depreciation. For innovation economies characterized by high steady-state levels of capital intensities the model shows that, due to a capitalization effect and a qualification-mismatch effect, increasing technological progress has adverse implications for long-term unemployment. Furthermore, for imitation economies with low steady-state capital intensities increasing technological progress can be either favorable or less favorable for long-term unemployment depending on whether the creative destruction effect or the capitalization effect dominates. Wie beeinflusst der technische Fortschritt die Langzeitarbeitslosigkeit? Die Beziehung zwischen Langzeitarbeitslosigkeit und der Wachstumsrate des technischen Fortschritts wird in einem Wachstums-Matching-Modell mit heterogenen Arbeitslosen und mit endogen bestimmter Langzeitarbeitslosigkeit, die auf Qualifikationsverlust zurückzuführen ist, analysiert. Für Innovationsländer, die durch hohe gleichgewichtige Kapitalintensitäten charakterisiert werden können, wird in dem Model gezeigt, dass steigender technischer Fortschritt aufgrund eines Kapitalisierungs- und eines Qualifikations-Mismatch- Effekts negative Implikationen für die Langzeitarbeitslosigkeit hat. Für Imitationsländer mit einer geringen gleichgewichtigen Kapitalintensität kann beschleunigter technischer Fortschritt positiv oder negativ auf die Langzeitarbeitslosigkeit wirken, je nachdem, ob der Effekt der kreativen Zerstörung oder der Kapitalisierungseffekt dominiert.

Suggested Citation

  • Birk, Angela, 2001. "Qualification-Mismatch and Long-Term Unemployment in a Growth-Matching Model," Discussion Paper Series 26181, Hamburg Institute of International Economics.
  • Handle: RePEc:ags:hwwadp:26181
    DOI: 10.22004/ag.econ.26181
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    Cited by:

    1. Mariya Neycheva, 2016. "Secondary versus higher education for growth: the case of three countries with different human capital’s structure and quality," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(6), pages 2367-2393, November.
    2. Birk, Angela, 2001. "Long-term unemployment and subsidizing vacancies in a growth-matching model," HWWA Discussion Papers 131, Hamburg Institute of International Economics (HWWA).
    3. Mariya Neycheva, 2021. "Qualification (Mis)Match for Upper Secondary and Higher Education," Social Sciences, MDPI, vol. 10(9), pages 1-15, August.
    4. Michaelis, Jochen & Birk, Angela, 2006. "Employment- and growth effects of tax reforms," Economic Modelling, Elsevier, vol. 23(6), pages 909-925, December.
    5. Birk, Angela, 2001. "Long-Term Unemployment and Subsidizing Vacancies in a Growth-Matching Model," Discussion Paper Series 26194, Hamburg Institute of International Economics.

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    Keywords

    Labor and Human Capital;

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