Unemployment and Development Ying Feng, David Lagakos and James E. Rauch
By: Feng, Ying
.
Contributor(s): Lagakos, David | Rauch, James E.
Material type: 
ArticleSubject(s): DESEMPLEO | DESARROLLO ECONOMICO
In:
The Economic Journal n.658, february, 2024Summary: We draw on household survey data from countries of all income levels and document that average unemployment rates increase with gross domestic product per capita. This is accounted for almost entirely by low—rather than high—educated workers. We interpret these facts in a model with frictional labour markets, a traditional self-employment sector, skill-biased productivity differences across countries, and unemployment benefits that become more generous with development. A calibrated version of the model does well in explaining the cross-country patterns that we document. Counterfactual exercises point to skill-biased productivity differences as the most important factor in explaining the cross-country unemployment patterns.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 282/2024/658-1 (Browse shelf) | Available | OP 282/2024/658-1 |
Browsing IEF Shelves Close shelf browser
| No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | ||
| OP 282/2024/657-1 The forward-looking effect of increasing the full retirement age | OP 282/2024/657-2 Housing prices and credit constraints in competitive search | OP 282/2024/658 The Economic Journal | OP 282/2024/658-1 Unemployment and Development | OP 282/2024/658-2 Unintended Consequences of Central Bank Lending in Financial Crises | OP 282/2024/659 The Economic Journal | OP 282/2024/659-1 Declining search frictions, unemployment and self-employment |
Bibliografía
We draw on household survey data from countries of all income levels and document that average unemployment rates increase with gross domestic product per capita. This is accounted for almost entirely by low—rather than high—educated workers. We interpret these facts in a model with frictional labour markets, a traditional self-employment sector, skill-biased productivity differences across countries, and unemployment benefits that become more generous with development. A calibrated version of the model does well in explaining the cross-country patterns that we document. Counterfactual exercises point to skill-biased productivity differences as the most important factor in explaining the cross-country unemployment patterns.
There are no comments for this item.