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Skill Heterogeneity and Equilibrium Unemployment

Author

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  • Rebecca Riley
  • Dr Garry Young

Abstract

Opportunities for skilled and unskilled workers in the UK diverged over the last quarter of the twentieth century. We develop an empirical framework consistent with these trends that highlights the importance of skill heterogeneity in both wage setting and labour demand in explaining aggregate labour market outcomes. The framework enables us to quantify the macroeconomic effects of shocks that impact particularly on one group rather than another. We find little evidence of change in labour demand and wage setting behaviour by skill group at the beginning of this century.

Suggested Citation

  • Rebecca Riley & Dr Garry Young, 2003. "Skill Heterogeneity and Equilibrium Unemployment," National Institute of Economic and Social Research (NIESR) Discussion Papers 222, National Institute of Economic and Social Research.
    • Handle: RePEc:nsr:niesrd:222
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    Cited by:

    1. Koskela, Erkki, 2010. "Analysis of Labor Tax Progression under Heterogeneous Domestic Labor Markets and Flexible Outsourcing," IZA Discussion Papers 5313, Institute of Labor Economics (IZA).
    2. Ray Barrell & John Fitzgerald & Rebecca Riley, 2010. "EU Enlargement and Migration: Assessing the Macroeconomic Impacts," Journal of Common Market Studies, Wiley Blackwell, vol. 48(2), pages 373-395, March.
    3. Jan König & Erkki Koskela, 2013. "The Role of Profit Sharing in Dual Labour Markets with Flexible Outsourcing," LABOUR, CEIS, vol. 27(4), pages 351-370, December.
    4. Koskela, Erkki, 2009. "Impacts of Labor Taxation with Perfectly and Imperfectly Competitive Domestic Labor Markets under Flexible Outsourcing," IZA Discussion Papers 4544, Institute of Labor Economics (IZA).
    5. Aronsson, Thomas & Koskela, Erkki, 2009. "Outsourcing, Public Input Provision and Policy Cooperation," Umeå Economic Studies 799, Umeå University, Department of Economics.
    6. Erkki Koskela & Panu Poutvaara, 2008. "Outsourcing and Labor Taxation in Dual Labor Markets," CESifo Working Paper Series 2333, CESifo.
    7. T. Gries & R. Grundmann & I. Palnau & M. Redlin, 2017. "Innovations, growth and participation in advanced economies - a review of major concepts and findings," International Economics and Economic Policy, Springer, vol. 14(2), pages 293-351, April.
    8. Aronsson, Thomas & Koskela, Erkki, 2008. "Optimal Redistributive Taxation and Provision of Public Input Goods in an Economy with Outsourcing and Unemployment," Umeå Economic Studies 759, Umeå University, Department of Economics.
    9. O'Mahony, Mary & Robinson, Catherine & Vecchi, Michela, 2008. "The impact of ICT on the demand for skilled labour: A cross-country comparison," Labour Economics, Elsevier, vol. 15(6), pages 1435-1450, December.
    10. Ray Barrell & John Fitzgerald & Rebecca Riley, 2010. "EU Enlargement and Migration: Assessing the Macroeconomic Impacts," Journal of Common Market Studies, Wiley Blackwell, vol. 48(2), pages 373-395, March.
    11. Bernd Görzig & Martin Gornig & Laurence Nayman, 2012. "Productivity Transitions in Large Mature Economies: France, Germany and the UK," Chapters, in: Matilde Mas & Robert Stehrer (ed.), Industrial Productivity in Europe, chapter 4, Edward Elgar Publishing.
    12. Serguei Kaniovski & Thomas Url & Helmut Hofer & Sandra Müllbacher, 2013. "A Long-run Macroeconomic Model of the Austrian Economy (A-LMM). New Results," WIFO Studies, WIFO, number 46830, April.
    13. Koskela, Erkki & Poutvaara, Panu, 2008. "Flexible Outsourcing and the Impacts of Labour Taxation in European Welfare States," IZA Discussion Papers 3699, Institute of Labor Economics (IZA).
    14. Jos頃. Fari & Alberto L󰥺 & Ana Mart󻑍arcos, 2014. "Assessing the impact of domestic outsourcing and offshoring on productivity at the firm level," Applied Economics, Taylor & Francis Journals, vol. 46(15), pages 1814-1828, May.
    15. Saibal Kar & Meghna Dutta, 2018. "Outsourcing and Productivity During Economic Crisis: Evidence from Indian Manufacturing Firms," Arthaniti: Journal of Economic Theory and Practice, , vol. 17(2), pages 168-182, December.

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