Spanish Unemployment Persistence and the Ladder Effect

Fabrice Collard, Raquel Fonseca () and Rafael Muñoz
Additional contact information
Fabrice Collard: CNRS-GREMAQ
Rafael Muñoz: IRES, Université Catholique de Louvain

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: This paper aims to examine to what extent a "ladder" e.ect may contribute to explain changes in unemployment in Spain. The "ladder" e.ect arises when highly-skilled workers who do not find a job that matches their skills, accept jobs that were previously occupied by less qualified staff. We develop a dynamic general equilibrium model. The model is then calibrated for the Spanish economy. Our results replicate the observed decline in the ratio of high to low-skilled vacancies, and explain how firms substitute high for low-skilled employment. These results also suggest that in the Spanish case, ladder e.ect can be better explained by increases in training costs interpreted as a biased-shock against low-skilled workers.

Keywords: Matching models; low-skilled unemployment; mismatch (search for similar items in EconPapers)
JEL-codes: E24 J64 (search for similar items in EconPapers)
Date: 2003-10-01
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Working Paper: Spanish Unemployment Persistence and the Ladder Effect (2002)
Working Paper: Spanish unemployment persistence and the ladder effect (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:sef:csefwp:106

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