In this paper, we study the effect of skill-biased technological change on unemployment when benefits are linked to the …, unemployment rises. More generally, we show that skill-biased technological change leads to increasing unemployment of the … inequality and unemployment under different social benefits regimes: Analyzing the social legislation in 14 countries, we find …

unemployment in a disaggregated economy. We simultaneously endogenise both the direction and pace of technological change as well … as the unemployment rates. We show that an increase in the supply of high-skilled labour can explain skilled …-biased technological change, a reduction in high-skilled unemployment and a rise in the high-skilled wage differential. In accordance with …