English, Article, Journal or magazine article edition: Employment Effects of Skill Biased Technological Change when Benefits are Linked to Per-Capita Income Matthias Weiss

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Bookmark: http://trove.nla.gov.au/version/68675
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Employment Effects of Skill Biased Technological Change when Benefits are Linked to Per-Capita Income
Author
  • Matthias Weiss
Physical Description
  • preprint
Notes
  • RePEc:xrs:meawpa:04043
  • This paper studies the employment effects of technological change when benefits are endogenous. If the (i) level of welfare aid depends on the general income level in the economy and (ii) wages for unskilled workers cannot fall below the level of welfare aid, there is a link between the wage for unskilled labor and the productivity of skilled labor. An increase in the latter will lead to an increase in average income and hence the level of welfare aid. This in turn leads unions to ask for higher wages for unskilled workers. Technological change is shown to have employment effects (only) if it is skill-biased and if this link exists.
  • RePEc:mea:meawpa:04043
Language
  • English
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