Abstract:
During the nineties, the skilled workers unemployment rate decreased relative to semiskilled and unskilled. At the same time the skilled earnings increased relative to semi-skilled workers, although it slight decreased compared to unskilled. The objective of this paper is to analyze the patterns of unemployment rate and earnings changes by skill. The evidence shows an increase of the relative demand for skilled workers, which accounted for a large amount of the decrease in the relative unemployment rate of this group, and contributed for an increase in their relative earnings. This first effect was compensated in part by relative supply changes. Product demand shifts were favorable to unskilled and semi-skilled workers. Also according to evidences, aggregate shocks increased the skilled workers relative earnings and unemployment, and wage pressure shifts decreased the skilled relative earnings and unemployment.
JEL-codes:J31J60J40 (search for similar items in EconPapers) Date: 2004
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