Job Differentiation vs. Unemployment

Samir Amine

Review of Economic Perspectives, 2013, vol. 13, issue 1, 30-42

Abstract: We use a matching model in which the horizontal job differentiation results from the rationale response of firms to the state of the labor market. We show that a decrease in the labor market tightness gives firms an incentive to raise the differentiation degree of jobs. Comparative statics suggests that an increase in unemployment benefits and in the minimum wage improves productivity of skilled workers by making jobs more differentiated, and leads to a raise in unemployment rate.

Keywords: Job Differentiation; Productivity; Matching; Unemployment (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:reoecp:v:13:y:2013:i:1:p:30-42:n:2

DOI: 10.2478/v10135-012-0014-6

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