Saint-Paul, Gilles - C.E.P.R. Discussion Papers - 1994
unemployment rates. It may be the case that this locus is steep enough to generate increasing returns to education. This may lead … to multiple equilibria: a high-education equilibrium may coexist with a low-education equilibrium. In the former, the … unskilled are more exposed to unemployment relative to the skilled, as compared with the latter. The two equilibria cannot be …