Are the Unemployed Unemployable?

Author/Editor:

Gilles Saint-Paul

Publication Date:

June 1, 1994

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper develops a matching model of the labor market under wage rigidity when hiring decisions are irreversible. There are two types of workers, the skilled and the unskilled. The model is used to analyze whether technological advances may have increased unemployment. It is shown that it is likely to be so if they are associated with an increase in the productivity and/or the supply of skilled workers relative to unskilled workers. These effects are stronger when hiring decisions are more irreversible.

Series:

Working Paper No. 1994/064

Subject:

Labor force Labor markets Unemployment Unemployment rate Unskilled labor

English

Publication Date:

June 1, 1994

ISBN/ISSN:

9781451848496/1018-5941

Stock No:

WPIEA0641994

Pages:

24

Please address any questions about this title to publications@imf.org