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Publication year

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

Resource type
Author/contributor
Title
Changes in Unemployment and Wage Inequality: An Alternative Theory and Some Evidence
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.
Publication
American Economic Review
Volume
89
Issue
5
Pages
1259-1278
Date
1999-12
Citation
Acemoglu, D. (1999). Changes in Unemployment and Wage Inequality: An Alternative Theory and Some Evidence. American Economic Review, 89, 1259–1278.
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