Unemployment Responses to Structural Shocks in the Skilles Labor Force

Bruno Decreuse

G.R.E.Q.A.M. from Universite Aix-Marseille III

Abstract: In order to increase skilled labour, governments manipulate the quantity and the quality of students. This paper investigates both dynamical and steady state responses of such a shock in a model of matching frictions with both skilled and unskilled agents. A less selective educationpolicy leads to a decrease of the skilled labour market tightness, and has ambiguous steady state effects on the unskilled one.

Keywords: UNEMPLOYMENT; EDUCATION; LABOUR (search for similar items in EconPapers)
JEL-codes: J21 J64 (search for similar items in EconPapers)
Pages: 28 pages
Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:fth:aixmeq:99a18

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