employment levels during recessions. However, they can create inefficiency in the labor market, and might limit labor market …

of other employment policies. …

asymmetry implies that an adverse, skill-neutral shock to aggregate employment may cause an increase in wage inequality, both … between and within skill categories, as well as an increase in unemployment, especially among low-skill workers. Movements in … productivity, unemployment and inequality may thus be linked to induced overeducation and credentialism. …