Weiss, Matthias; Garloff, Alfred - Zentrum für Europäische Wirtschaftsforschung (ZEW) - 2005
In this paper, we study the effect of skill-biased technological change on unemployment when benefits are linked to the … workers and hence their wage leads to an increase in average income and hence in benefits. The increased fallback income, in … unskilled when benefits are endogenous. The model provides a theoretical explanation for diverging developments in wage …