S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Department of Economics, Stockholm University Research Papers in Economics, Department of Economics, Stockholm University

No 2000:9:
Unemployment in Europe: Swimming against the Tide of Skill-Biased Technical Progress without Relative Wage Adjustment

Werner Roeger and Hans Wijkander ()

Abstract: The hypothesis that European unemployment is the rigid relative wage mirror-image of increased wage dispersion in the US is explored. The

framework is a two sector –manufacturing and services- model with

skilled and unskilled labor. A proxy for skill-biased technical progress (SBTP) is constructed from data on total factor productivity (TFP). Econometric analysis of the relationship between SBTP and aggregate unemployment shows that SBTP explains some 50% of the unemployment increase in major European countries since the early 1970s, but it does not explain US unemployment. The hypothesis is robust in that it is not rendered void by inclusion of alternative, mostly macroeconomic, explanatory variables.

Keywords: TBA; (follow links to similar papers)

JEL-Codes: Q28; (follow links to similar papers)

40 pages, April 11, 2000

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

wp00_09.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Sten Nyberg ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:sunrpe:2000_0009 This page was generated on 2016-11-07 22:04:13