Qualification-mismatch and long-term unemployment in a growth-matching model

Angela Birk

No 128, HWWA Discussion Papers from Hamburg Institute of International Economics (HWWA)

Abstract: How does technical progress affect long-term unemployment? The relationship between long-term unemployment and the rate of growth attributable to technical progress is evaluated in a growth-matching-model with heterogeneous jobless workers and with endogenously determined long-term unemployed resulting from skill-depreciation. For innovation economies characterized by high steady-state levels of capital intensities the model shows that, due to a capitalization effect and a qualification-mismatch effect, increasing technological progress has adverse implications for long-term unemployment. Furthermore, for imitation economies with low steady-state capital intensities increasing technological progress can be either favorable or less favorable for long-term unemployment depending on whether the creative destruction effect or the capitalization effect dominates.

Keywords: long-term unemployment; mismatch; growth; search; matching (search for similar items in EconPapers)
JEL-codes: E24 J41 O41 (search for similar items in EconPapers)
Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/19423/1/128.pdf (application/pdf)

Related works:
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:zbw:hwwadp:26181

Access Statistics for this paper

More papers in HWWA Discussion Papers from Hamburg Institute of International Economics (HWWA) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().