EconStor >
Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim >
ZEW Discussion Papers >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/24175
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorWeiss, Matthiasen_US
dc.contributor.authorGarloff, Alfreden_US
dc.date.accessioned2009-02-16T14:49:37Z-
dc.date.available2009-02-16T14:49:37Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/24175-
dc.description.abstractIn this paper, we study the effect of skill-biased technological change on unemployment when benefits are linked to the evolution of average income and when this is not the case. In the former case, an increase in the productivity of skilled workers and hence their wage leads to an increase in average income and hence in benefits. The increased fallback income, in turn, makes unskilled workers ask for higher wages. As higher wages are not justified by respective productivity increases, unemployment rises. More generally, we show that skill-biased technological change leads to increasing unemployment of the unskilled when benefits are endogenous. The model provides a theoretical explanation for diverging developments in wage inequality and unemployment under different social benefits regimes: Analyzing the social legislation in 14 countries, we find that benefits are linked to the evolution of average income in Continental Europe but not in the U.S. and the UK. Given this institutional difference, our model predicts that skill-biased technological change leads to rising unemployment in Continental Europe and rising wage inequality in the U.S. and the UK.en_US
dc.language.isoengen_US
dc.publisherZentrum für Europäische Wirtschaftsforschung (ZEW) Mannheimen_US
dc.relation.ispartofseriesZEW Discussion Papers 05-79en_US
dc.subject.jelO30en_US
dc.subject.jelE24en_US
dc.subject.jelJ50en_US
dc.subject.jelJ31en_US
dc.subject.ddc330en_US
dc.subject.keywordUnemploymenten_US
dc.subject.keywordSkill-Biased Technological Changeen_US
dc.subject.keywordBenefitsen_US
dc.subject.stwArbeitslosigkeiten_US
dc.subject.stwLohnstrukturen_US
dc.subject.stwTechnischer Fortschritten_US
dc.subject.stwQualifikationen_US
dc.subject.stwMehr-Sektoren-Modellen_US
dc.subject.stwFaktorsubstitutionen_US
dc.subject.stwRelativer Preisen_US
dc.subject.stwTheorieen_US
dc.titleSkill Biased Technological Change and Endogenous Benefits: The Dynamics of Unemployment and Wage Inequalityen_US
dc.typeWorking Paperen_US
dc.identifier.ppn504688537en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:zewdip:4562-
Appears in Collections:ZEW Discussion Papers
Publikationen von Forscherinnen und Forschern des ZEW

Files in This Item:
File Description SizeFormat
dp0579.pdf1.42 MBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.