Get 20M+ Full-Text Papers For Less Than $1.50/day. Subscribe now for You or Your Team.

Learn More →

Changes in Unemployment and Wage Inequality: An Alternative Theory and Some Evidence

Changes in Unemployment and Wage Inequality: An Alternative Theory and Some Evidence Abstract I present a model where firms decide what types of jobs to create and then search for suitable workers. When there are few skilled workers and the skilled-unskilled productivity gap is small, firms create a single type of job and recruit all workers. An increase in the proportion of skilled workers or skill-biased technical change can create a qualitative change in the composition of jobs, increasing the demand for skills, wage inequality, and unemployment. I provide some evidence that there has been a change in the composition of jobs in the United States during the past two decades. (JEL E24, J31, J64 ) http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png American Economic Review American Economic Association

Changes in Unemployment and Wage Inequality: An Alternative Theory and Some Evidence

American Economic Review , Volume 89 (5) – Dec 1, 1999

Loading next page...
 
/lp/american-economic-association/changes-in-unemployment-and-wage-inequality-an-alternative-theory-and-UDEpq0TlYK

References (36)

Publisher
American Economic Association
Copyright
Copyright © 1999 by the American Economic Association
Subject
Articles
ISSN
0002-8282
DOI
10.1257/aer.89.5.1259
Publisher site
See Article on Publisher Site

Abstract

Abstract I present a model where firms decide what types of jobs to create and then search for suitable workers. When there are few skilled workers and the skilled-unskilled productivity gap is small, firms create a single type of job and recruit all workers. An increase in the proportion of skilled workers or skill-biased technical change can create a qualitative change in the composition of jobs, increasing the demand for skills, wage inequality, and unemployment. I provide some evidence that there has been a change in the composition of jobs in the United States during the past two decades. (JEL E24, J31, J64 )

Journal

American Economic ReviewAmerican Economic Association

Published: Dec 1, 1999

There are no references for this article.