Unemployment and Search Externalities in a Model with Heterogeneous Jobs and Heterogeneous Workers

Research output: Working paperProfessional

Abstract

The continuing deterioration of the position of low skilled workers in thebeginning of the 90's in essentially all industrialized countries is one of the most debated issues in both labor and macro-economics. In this paper a matching model with low and high skilled workers and simple and complex jobs is presented. I show that the degree to which low skilled workers are harmed by high skilled workers who are willing to temporarily accept simple jobs depends on the relative productivity of high and low skilled workers on simple jobs. Under certain conditions low skilled workers can even benefit from job competition by high skilled workers.
Original languageEnglish
Place of PublicationAmsterdam
PublisherTinbergen Instituut
Publication statusPublished - 1999

Publication series

NameDiscussion paper TI
No.99-075/3

Fingerprint

Skilled workers
Unemployment
Externalities
Workers
Matching model
Labor economics
Productivity
Macroeconomics
Developed countries
Deterioration

Cite this

Gautier, P. A. (1999). Unemployment and Search Externalities in a Model with Heterogeneous Jobs and Heterogeneous Workers. (Discussion paper TI; No. 99-075/3). Amsterdam: Tinbergen Instituut.
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Gautier, PA 1999 'Unemployment and Search Externalities in a Model with Heterogeneous Jobs and Heterogeneous Workers' Discussion paper TI, no. 99-075/3, Tinbergen Instituut, Amsterdam.

Unemployment and Search Externalities in a Model with Heterogeneous Jobs and Heterogeneous Workers. / Gautier, Pieter A.

Amsterdam : Tinbergen Instituut, 1999. (Discussion paper TI; No. 99-075/3).

Research output: Working paperProfessional

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Gautier PA. Unemployment and Search Externalities in a Model with Heterogeneous Jobs and Heterogeneous Workers. Amsterdam: Tinbergen Instituut. 1999. (Discussion paper TI; 99-075/3).