We develop a model of directed technology adoption, frictional unemployment, and migration to examine the effects of a change in skill endowments on the wages, employment rates, and emigration rates of skilled and unskilled workers. We find that, depending on the elasticity of substitution...

This paper proposes a new method to estimate the extent of job competition between workers with different schooling levels. We estimate the structural parameters of a matching function generalised to incorporate crowding out effects. We use flow data out of unemployment containing information on...

The unemployment rise in EU countries has been particularly strong for low-skilled workers. This observation has often been explained in terms of biased technical change and relative wage rigidities. More attention has been paid recently to an alternative mechanism, the crowding-out of...