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2013 | 13 | 1 | 30-42
Article title

Job Differentiation vs. Unemployment

Authors
Title variants
Languages of publication
EN
Abstracts
EN
We use a matching model in which the horizontal job differentiation results from the rationale response of firms to the state of the labor market. We show that a decrease in the labor market tightness gives firms an incentive to raise the differentiation degree of jobs. Comparative statics suggests that an increase in unemployment benefits and in the minimum wage improves productivity of skilled workers by making jobs more differentiated, and leads to a raise in unemployment rate.
Publisher
Year
Volume
13
Issue
1
Pages
30-42
Physical description
Dates
published
2013-03-01
online
2013-04-20
Contributors
author
  • Université du Québec en Outaouais and CIRANO, 283 boul. Alexandre-Taché, C.P. 1250, succursale Hull, Gatineau, Québec, Canada, J8X 3X7, and CIRANO, Montréal, Canada,, samir.amine@uqo.ca
References
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  • AMINE, S., LAGES DOS SANTOS, P. (2011). The Influence of Labour Market Institutions on Job Complexity. Research in Economics.65 (3). Pp. 209-220.
  • ALBRECHT, J.W., GAUTIER, P.A., VROMAN, S.B. (2003). Matching with Multiple Applications. Economics Letters. 78 (1). Pp. 67-70.
  • ALBRECHT, J.W., VROMAN, S.B. (2002). Matching model with endogenous skill requirements. International Economic Review. 43. Pp.283-305.
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  • GAUTIER, P.A., TEULINGS, C. (2004). The right man for the job. Review ofEconomic Studies.71, Pp.553-580.
  • MARIMON, R., ZILIBOTTI, F. (1999). Unemployment vs. mismatch of talents: reconsidering unemployment benefits. Economic Journal. 109. Pp. 266-291.
  • MC KENNA, C. (1985). Uncertainty and the labour market, Harvester Press.
  • MORTENSEN, D.T., PISSARIDES, C. (1999). Unemployment response to ‘‘skill biased’’ shocks: the role of labour market policy. Economic Journal. 109. Pp. 242-265.
  • NICKELL, S. (2004). Poverty and worklessness in Britain. Economic Journal. 114. Pp.1-25.
  • PETRONGOLO, B., PISSARIDES, C. (2001).Looking into the Black Box: A Survey of the Matching Function. Journal of Economic Literature. 39. Pp. 390-431.
  • PISSARIDES, C. (2000). Equilibrium Unemployment Theory, Cambridge: MIT Press.
Document Type
Publication order reference
Identifiers
YADDA identifier
bwmeta1.element.doi-10_2478_v10135-012-0014-6
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