Changes in Unemployment and Wage Inequality: An Alternative Theory and Some Evidence

S-Tier
Journal: American Economic Review
Year: 1999
Volume: 89
Issue: 5
Pages: 1259-1278

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

I present a model where firms decide what types of jobs to create and then search for suitable workers. When there are few skilled workers and the skilled-unskilled productivity gap is small, firms create a single type of job and recruit all workers. An increase in the proportion of skilled workers or skill-biased technical change can create a qualitative change in the composition of jobs, increasing the demand for skills, wage inequality, and unemployment. I provide some evidence that there has been a change in the composition of jobs in the United States during the past two decades.

Technical Details

RePEc Handle
repec:aea:aecrev:v:89:y:1999:i:5:p:1259-1278
Journal Field
General
Author Count
1
Added to Database
2026-01-24