Frictions or deadlocks? Job polarization with search and matching frictions

Arbeitspapier

This paper extends Pissarides (1990)'s matching model by considering two sectors (routine and manual) and workers' occupational choices, in the context of skill-biased demand shifts, to the detriment of routine jobs and in favour of manual jobs because of technological changes. The theoretical challenge is to investigate the reallocation process from the middle towards the bottom of the wage distribution. By using this framework, we shed light on the way in which labour market institutions affect the job polarization observed in the United States and Europe. The results of our quantitative experiments suggest that search frictions have non-trivial effects on the reallocation process and transitional dynamics of aggregate employment.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SFB 649 Discussion Paper ; No. 2015-051

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Job, Occupational, and Intergenerational Mobility; Promotion ; Unemployment: Models, Duration, Incidence, and Job Search ; Technological Change: Choices and Consequences; Diffusion Processes
• Subject: search and matching ; job polarization ; reallocation ; labor market institutions

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Albertini, Julien ; Hairault, Jean Olivier ; Langot, François ; Sopraseuth, Thepthida
• Event: Veröffentlichung
• (who): Humboldt University of Berlin, Collaborative Research Center 649 - Economic Risk
• (where): Berlin
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/146166
• Last update: 10.03.2025, 11:42 AM CET