Jana Kremer
Labor Unions,Unemployment,and Inequality in an OLG-Model with Heterogeneous
Agents
Abstract:
As a consequence of falling relative demand for low skilled labor in the
OECD, people with no or minor qualification experience a deterioration
of their economic situation. While flexible labor markets have led to higher
wage differentials in the USA, the major problem of most European countries
is the high rate of unemployment of the low skilled.
To integrate currently discussed determinants of wage distribution
and unemployment into a common context, labor unions and qualification
differences in labor supply are introduced to an OLG-model with heterogeneous
agents. The model generates skill specific unemployment rates and a wage
dispersion affected by production technology, wage setting procedure, and
qualification structure of labor supply. As an application of the
model, the relative importance of wage dispersion, unemployment, and lifelong
learning for economic growth and income distribution can be evaluated.
JEL: J31, J51, D31, d91, O41, C68
Paper:
Paper available as pdf-file.
Beitrag Nr. 207, Volkswirtschaftliche Diskussionsreihe, Institut für
Volkswirtschaftslehre der Universität Augsburg
Contact:
Jana Kremer,
University of Augsburg, Department of Economics, Universitätsstr.
16, D-86135 Augsburg, Phone +49-821-598-4191; Fax +49-821-598-4231
E-Mail: jana.kremer@wiwi.uni-augsburg.de
v.
K., 17.09.2001