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dc.contributor.authorWeiss, Matthiasen
dc.contributor.authorGarloff, Alfreden
dc.date.accessioned2009-02-16T14:49:37Z-
dc.date.available2009-02-16T14:49:37Z-
dc.date.issued2005-
dc.identifier.urihttp://hdl.handle.net/10419/24175-
dc.description.abstractIn this paper, we study the effect of skill-biased technological change onunemployment when benefits are linked to the evolution of average income and when thisis not the case. In the former case, an increase in the productivity of skilled workersand hence their wage leads to an increase in average income and hence in benefits. Theincreased fallback income, in turn, makes unskilled workers ask for higher wages. As higherwages are not justified by respective productivity increases, unemployment rises. Moregenerally, we show that skill-biased technological change leads to increasing unemploymentof the unskilled when benefits are endogenous.The model provides a theoretical explanation for diverging developments in wage inequalityand unemployment under different social benefits regimes: Analyzing the sociallegislation in 14 countries, we find that benefits are linked to the evolution of averageincome in Continental Europe but not in the U.S. and the UK. Given this institutionaldifference, our model predicts that skill-biased technological change leads to rising unemploymentin Continental Europe and rising wage inequality in the U.S. and the UK.en
dc.language.isoengen
dc.publisher|aZentrum für Europäische Wirtschaftsforschung (ZEW) |cMannheimen
dc.relation.ispartofseries|aZEW Discussion Papers |x05-79en
dc.subject.jelO30en
dc.subject.jelE24en
dc.subject.jelJ50en
dc.subject.jelJ31en
dc.subject.ddc330en
dc.subject.keywordUnemploymenten
dc.subject.keywordSkill-Biased Technological Changeen
dc.subject.keywordBenefitsen
dc.subject.stwArbeitslosigkeiten
dc.subject.stwLohnstrukturen
dc.subject.stwTechnischer Fortschritten
dc.subject.stwQualifikationen
dc.subject.stwMehr-Sektoren-Modellen
dc.subject.stwFaktorsubstitutionen
dc.subject.stwRelativer Preisen
dc.subject.stwTheorieen
dc.titleSkill Biased Technological Change and Endogenous Benefits: The Dynamics of Unemployment and Wage Inequality-
dc.typeWorking Paperen
dc.identifier.ppn504688537en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:zewdip:4562en

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