look at the effect of a contractionary monetary policy shock on unemployment rates of high and low-skill workers, finding …

This paper analyses how labour market heterogeneity affects unemployment, productivity and business cycle dynamics that … growth dynamics. First, as the composition of labour market skills leads to supply segmentation, the relative scarcity of … skilled workers increases the natural rate of unemployment and reduces total factor productivity with long- run effects on the …

in their unemployment rate and not a decline in labour force participation rate. Policymakers should take account of …