Journal Article

Macroeconomic implications of shifts in the relative demand for skills

Abstract: Besides widening wage inequality, if the demand for skills continues to increase it will probably reduce aggregate employment. Policy measures to offset the impact of increased demand for skills on wage inequality and employment would be very costly. Moreover, given local funding of primary and secondary education a sufficiently large supply response cannot be assumed.

Keywords: Education; Labor supply; Unemployment;

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Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Economic Policy Review

Issue: Jan

Pages: 48-53

Order Number: v. 1. no. 1