IDEAS home Printed from https://ideas.repec.org/p/unm/umamer/1999019.html
   My bibliography  Save this paper

Wage Divergence and Asymmetries in Unemployment in a Model with Biased Technical Change

Author

Listed:
  • Muysken, Joan
  • Sanders, Mark
  • Zon, Adriaan van

    (MERIT)

Abstract

In this article we present a model with two levels of skills and two classes of goods, one produced with a technology requiring high skills, the other produced with a technology that can be operated by both low and high skilled workers. In this model skill biased technical change causes a drop in the demand for low skilled workers. The model, however, generates two distinct labour market regimes. In one regime we show skill biased technical change causes wage divergence between skilled and unskilled workers. In the alternative regime a reallocation of labour prevents such wage responses. Introducing labour market institutions through a bargaining process endogenises labour supply. This leads to three possible labour market regimes and shows that skill biased technical change always causes wage divergence but wage responses are moderated by higher unemployment of low skilled workers.

Suggested Citation

  • Muysken, Joan & Sanders, Mark & Zon, Adriaan van, 1999. "Wage Divergence and Asymmetries in Unemployment in a Model with Biased Technical Change," Research Memorandum 019, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:umamer:1999019
    as

    Download full text from publisher

    File URL: https://unu-merit.nl/publications/rmpdf/1999/rm1999-019.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zon, Adriaan van, 2000. "Endogenous Technical Change and Skill Biases in Employment Opportunities," Research Memorandum 004, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    2. Muysken, Joan & Weel, Bas ter, 1999. "Overeducation, Job Competition and Unemployment," Research Memorandum 030, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).

    More about this item

    Keywords

    labour economics ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unm:umamer:1999019. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Leonne Portz (email available below). General contact details of provider: https://edirc.repec.org/data/meritnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.