Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/47027
Authors: 
Schimmelpfennig, Axel
Year of Publication: 
1999
Series/Report no.: 
Kiel Working Paper 914
Abstract: 
The secular shift in labor demand from unskilled to skilled labor is explained within a model that is solved numerically. There are three branches producing a basic good, a differentiated luxury good, and an intermediate service. Production is more skill-intensive in the luxury good and the service branch. Consumption expenditure shifts towards the luxury good with rising income. In this setting, both unskilled-specific and neutral technical change lead to a rise in the relative wage of the skilled. Increasing unemployment results only for a restrictive assumption about labor market rigidities.
Subjects: 
Skill-biased technical change
wages
unemployment
JEL: 
E24
J21
J31
Document Type: 
Working Paper

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