Full Citation

Title: Employment inequality: Why do the low-skilled work less now?

Citation Type: Journal Article

Publication Year: 2021

ISBN:

ISSN:

DOI: 10.1016/j.jmoneco.2020.09.004

NSFID:

PMCID:

PMID:

Abstract: Low-skilled prime-age men are less likely to be employed than high-skilled prime-age men, and the differential has increased since the 1970s. I build a search model encompassing three explanations: (1) automation and trade reduced the demand for low-skilled workers; (2) health, welfare, and recreational gaming/computer technology reduced the supply of low-skilled workers; and (3) factors affecting job search, such as online job boards, reduced frictions for high-skilled workers. I find a shift in demand away from low-skilled workers was the leading cause, a shift in supply had little effect, and search frictions actually reduced employment inequality.

Url: https://www.sciencedirect.com/science/article/pii/S0304393220301094

User Submitted?: No

Authors: Wolcott, Erin L.

Periodical (Full): Journal of Monetary Economics

Issue:

Volume: 118

Pages: 161-177

Data Collections: IPUMS USA, IPUMS CPS

Topics: Labor Force and Occupational Structure

Countries: