EconPapers    
Economics at your fingertips  
 

Low-Skilled Unemployment, Biased Technological Shocks and Job Competition

Olivier Pierrard () and Henri Sneessens ()

No 784, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: The unemployment rise in EU countries has been particularly strong for low-skilled workers. This observation has often been explained in terms of biased technical change and relative wage rigidities. More attention has been paid recently to an alternative mechanism, the crowding-out of low-skilled workers by over-qualified workers. The objective of this paper is both methodological and empirical. We construct a dynamic general equilibrium model with two types of jobs and two types of workers and with search unemployment. The model is calibrated and simulated to examine the interactions between the “skill bias” and “crowdingout” mechanisms. When such interactions are accounted for, the model reproduces quite well the observed unemployment changes.

Keywords: skill bias; crowding out; over-education; equilibrium search unemployment; ladder effect (search for similar items in EconPapers)
JEL-codes: E24 J21 J23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab and nep-ltv
Date: 2003-05
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://ftp.iza.org/dp784.pdf (application/pdf)

Related works:
Working Paper: Low-Skilled Unemployment, Biased Technological Shocks and Job Competition (2002) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp784

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute for the Study of Labor (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Series data maintained by Mark Fallak ().

 
Page updated 2017-10-13
Handle: RePEc:iza:izadps:dp784