Article (Scientific journals)
Biased Technological Shocks, Relative Wage Rigidities and Low-Skilled Unemployment
Sneessens, Henri; Pierrard, Olivier
2008In Scottish Journal of Political Economy, 55 (3), p. 330-352
Peer reviewed
 

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Abstract :
[en] The contrast between the evolution over the last decades of the European Union (EU) and the US unemployment rates, especially for the low-skilled, is well known. A consensus view is that these different outcomes can be explained by the interactions between common shocks and specific institutional setups. In this paper, we emphasize the interactions between technological changes and wages rigidities. We construct a fully calibrated general equilibrium model with two types of jobs and two types of workers, and with search unemployment. Our simulations show that with wage rigidities, technological changes suffice to generate a continuous rise in the low-skilled unemployment rate and an almost unchanged high-skilled unemployment rate. Without wage rigidities, the unemployment rates remain unchanged but the wage dispersion widens.
Disciplines :
Macroeconomics & monetary economics
Identifiers :
UNILU:UL-ARTICLE-2013-102
Author, co-author :
Sneessens, Henri ;  Université Catholique de Louvain - UCL > IRES - Institut de recherches économiques et sociales
Pierrard, Olivier;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
Language :
English
Title :
Biased Technological Shocks, Relative Wage Rigidities and Low-Skilled Unemployment
Publication date :
2008
Journal title :
Scottish Journal of Political Economy
ISSN :
0036-9292
Publisher :
Blackwell Publishing
Volume :
55
Issue :
3
Pages :
330-352
Peer reviewed :
Peer reviewed
Available on ORBilu :
since 28 August 2013

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