Skip to main content
Article thumbnail
Location of Repository

Can labour supply explain the rise in unemployment and intergroup wage inequality in the OECD?

By E. Wasmer

Abstract

This paper investigates how labour supply trends might have affected the OECD labour markets in the last decades. It is argued that changes in supply cannot be considered as homogenous: they involve more young and more adult female workers, who are complements with skilled men and substitutes with low-wage groups (young, unskilled). Such labour supply trends since the ''50s may have increased competition between women, young workers and low skilled workers in some segments of the labour force. These mechanisms are described by a model and an empirical strategy is undertaken to test its predictions. Disaggregation by gender is necessary. Endogeneity of participation levels with respect to unemployment is treated in two ways, by instrumental variables estimators, and with time series techniques. Significant causal relations between participation and unemployment cannot be rejected

Topics: HD Industries. Land use. Labor
Publisher: Centre for Economic Performance, London School of Economics and Political Science
Year: 1998
OAI identifier: oai:eprints.lse.ac.uk:20245
Provided by: LSE Research Online

Suggested articles

Citations

  1. (1983). Changes in Labor Force Composition and Male Earnings: A Production Approach\, The Journal of Human Resources, doi
  2. (1992). Changes in Relative Wages, 1963-1987: Supply and26 Demand Factors\, doi
  3. (1993). Co-integration, ErrorCorrection, and the Econometric Analysis of Non-Stationary Data, doi
  4. (1996). Combatting Unemployment: Is °exibility doi
  5. (1995). Demand for Skilled Labor, Technical Changes and International Trade, The French Case, 1970-93\, mimeo INSEE
  6. (1995). Dynamic Econometrics, doi
  7. (1979). E®ects of Cohort Size on Earnings: The Baby Boom Babies' Financial Bust", doi
  8. (1993). Econometric Analysis, doi
  9. (1979). Econometric Studies of Labor-Labor Substitution and their Implications for Policy\, The Journal of Human Resources, doi
  10. (1994). Education, exp¶ erience et salaires: tendances r¶ ecentes et ¶ evolution de long terme",
  11. (1993). European Unemployment: a Retrospective\, prepared for the European Economic Association Meeting in Helsinski,
  12. (1994). European Unemployment: A Survey\, doi
  13. (1998). High Wage Workers and High Wage Firms", forthcoming Econometrica doi
  14. (1986). Hysteresis and the European Unemployment Problem, doi
  15. (1985). Intercountry Comparisons of Labor Force Trends and of Related Developments: An Overview\, doi
  16. (1993). International comparisons of unemployment indicators\, Monthly Labor Review,
  17. (1995). International unemployment indicators, 1983-93\, Monthly Labor Review,
  18. (1962). Labor Force Participation of Married Women: A study of Labor Supply\, in Gregg Lewis, ed, Aspects of Labor Economics,
  19. (1982). Labor Market Competition Among Youths, White Women and Others\, doi
  20. (1966). Labour Force Participation and Unemployment. A Review of Recent Evidence\,
  21. (1982). Labour Force Participation: Timing and Persistence\, doi
  22. (1992). Les salari¶ es au SMIC en Juillet
  23. (1994). Regional Labor Markets and the Determinants of Wage Inequality\,
  24. (1986). The Demand for Labor in the Long Run\, doi
  25. (1986). The Rise of Unemployment in France\, doi
  26. (1985). The Trend in the Male-Female Wage Gap in the United States", doi
  27. (1993). Time Series Models, Harvester Wheatsheaf,
  28. (1996). Time-series-based Econometrics, Unit Roots and cointegration, doi
  29. (1989). Unemployment Consequences of an Ageing Population. An application of Insider-Outsider Theory" doi
  30. (1991). Unemployment. Macroeconomic Performance and the Labour Market, doi
  31. (1993). Wage Inequality and the Rise in Return to Skill", doi
  32. (1991). Wages, Unemployment and Population Changes" ,
  33. (1988). When a Strike Comes Marching Home",

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.