Are the Unemployed Unemployable
This paper develops a matching model of the labor market under wage rigidity when hiring decisions are irreversible. There are two types of workers, the skilled and the unskilled. The model is used to analyze whether technological advances may have increased unemployment. It is shown that it is likely to be so if they are associated with an increase in the productivity and/or the supply of skilled workers relative to unskilled workers. These effects are stronger when hiring decisions are more irreversible.
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|Date of creation:||1992|
|Date of revision:|
|Publication status:||Published in European Economic Review, 1996, 40, pp. 1501-1519|
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References listed on IDEAS
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- Calmfors, L., 1992.
"Lessons from the Macroeconomic Experience of Sweden,"
522, Stockholm - International Economic Studies.
- Calmfors, Lars, 1993. "Lessons from the macroeconomic experience of Sweden," European Journal of Political Economy, Elsevier, vol. 9(1), pages 25-72, March.
- P. Diamond, 1980.
"Aggregate Demand Management in Search Equilibrium,"
268, Massachusetts Institute of Technology (MIT), Department of Economics.
- Saint-Paul, Gilles, 1992.
"Are the Unemployed Unemployable?,"
CEPR Discussion Papers
689, C.E.P.R. Discussion Papers.
- Layard, R. & Nickell, S., 1991.
"Unemployment in the OECD Countries,"
Economics Series Working Papers
99130, University of Oxford, Department of Economics.
- repec:tpr:qjecon:v:107:y:1992:i:4:p:1371-91 is not listed on IDEAS
- C Bean, 1992.
"European Unemployment: A Survey,"
CEP Discussion Papers
dp0071, Centre for Economic Performance, LSE.
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