Beschreibung

"This paper presents a general-equilibrium model of endogenous skilled-biased technological change and matching unemployment in a disaggregated economy. We simultaneously endogenize both the direction and the pace of technological change as well as the long-run unemployment rates. We show that an increase in the supply of high-skilled labor can induce skilled-biased technological change, a reduction in high-skilled unemployment and a rise in the wage differential between high- and low-skilled workers. In accordance with convincing empirical evidence, the high-skilled suffer from shorter and fewer spells of unemployment." (Author's abstract, IAB-Doku) ((en))