Skill Heterogeneity and Equilibrium Unemployment

Posted: 2 Jul 2008

See all articles by Rebecca Riley

Rebecca Riley

National Institute of Economic and Social Research (NIESR)

Garry Young

ESCOE

Date Written: October 2007

Abstract

Opportunities facing skilled and unskilled workers diverged over the last quarter of the twentieth century in the UK. We develop an empirical framework consistent with these trends that highlights the importance of skill heterogeneity in both wage setting and labour demand in explaining aggregate labour market outcomes. The framework enables us to quantify the macroeconomic effects of shocks that impact particularly on one group rather than another.

Keywords: JEL classifications: E24, J23

Suggested Citation

Riley, Rebecca and Young, Garry, Skill Heterogeneity and Equilibrium Unemployment (October 2007). Oxford Economic Papers, Vol. 59, Issue 4, pp. 702-725, 2007, Available at SSRN: https://ssrn.com/abstract=1154395 or http://dx.doi.org/10.1093/oep/gpm011

Rebecca Riley (Contact Author)

National Institute of Economic and Social Research (NIESR) ( email )

2 Dean Trench Street
Smith Square
London, SW1P 3HE
United Kingdom

Garry Young

ESCOE ( email )

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