IDEAS home Printed from https://ideas.repec.org/p/xrs/gkwopa/2000-02.html
   My bibliography  Save this paper

Employment Effects of Skill-Biased Technical Change When Benefits are Linked to Indices of Standards of Living

Author

Abstract

This paper studies the employment effects of skill-biased technological change under the assumption that the level of social security benefits depends on the general income level in the economy. In models of wage bargaining, wages---especially at the lower end of the wage distribution---typically depend on the level of unemployment or social security benefits. These benefits are generally considered exogenous. In practice, however, benefits are often linked to indices of standards of living. Endogeneity of the level of benefits leads to an interdependence between wages and benefits. As a consequence, the wage for unskilled labor is linked to the wage for skilled labor. Technological change is shown to have employment effects (only) if it is ``skill-biased'' AND if this link between the wages for different skills exists.

Suggested Citation

  • Matthias Weiss, 1999. "Employment Effects of Skill-Biased Technical Change When Benefits are Linked to Indices of Standards of Living," GK working paper series 2000-02, Post Graduate Programme "Allocation on Financial Markets", University of Mannheim, revised Jun 2000.
  • Handle: RePEc:xrs:gkwopa:2000-02
    as

    Download full text from publisher

    File URL: http://www.vwl.uni-mannheim.de/gk/wp/gkwp-2000-02.pdf
    Download Restriction: no

    More about this item

    Keywords

    Unemployment; Skill Biased Technical Change; Wage Bargaining;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:xrs:gkwopa:2000-02. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helga Gebauer) The email address of this maintainer does not seem to be valid anymore. Please ask Helga Gebauer to update the entry or send us the correct email address. General contact details of provider: http://edirc.repec.org/data/fvmande.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.