Dustmann, Christian; Glitz, Albrecht - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2011
In this paper, we investigate how changes in the skill mix of local labor supply are absorbedby the economy. We distinguish between three adjustment mechanisms: through factorprices, through an expansion in the size of those production units that use the moreabundant skill group more...