Egalitarian Wage Policies, Unemployment and Skill-Biased Technological Change
Forfattere:
Røed, Knut
År:
2005
Referanse:
Research in Economics (Ricerche Economiche)
5, 375-387Sammendrag (engelsk)
A popular explanation for the rise in European unemployment during the past decades is that relative wages failed to adjust to changes in relative productivities. Many economists reject this hypothesis on the ground that the ratios of low- to high-skill unemployment did not increase. Building on a search model, I argue that relative unemployment rates are affected by skill-neutral, as well as skill-biased shocks; hence stable ratios are theoretically consistent with a mix of skill-biased and skill-neutral shocks. Yet, numerical exercises confirm that wage rigidity in the face of skill-biased shocks probably did not explain much of the European unemployment experience.
Nøkkelord:
Unemployment, Job search, Wage compression, Skill-bias
JEL:
J31, J64
Prosjekt info:
Oppdragsgiver: Norges forskningsrådOppdragsgivers prosjektnr.:
Frisch prosjekt: 1151 - Mobilisering av arbeidstilbudet
Kontakt:
knut.roed@frisch.uio.no
Finansiering:
Norges Forskningsråd