<abstract xmlns="http://www.w3.org/1999/xhtml"><p>We use a matching model in which the horizontal job differentiation results from the rationale response of firms to the state of the labor market. We show that a decrease in the labor market tightness gives firms an incentive to raise the differentiation degree of jobs. Comparative statics suggests that an increase in unemployment benefits and in the minimum wage improves productivity of skilled workers by making jobs more differentiated, and leads to a raise in unemployment rate.</p></abstract>

We use a matching model in which the horizontal job differentiation results from the rationale response of firms to the state of the labor market. We show that a decrease in the labor market tightness gives firms an incentive to raise the differentiation degree of jobs. Comparative statics suggests that an increase in unemployment benefits and in the minimum wage improves productivity of skilled workers by making jobs more differentiated, and leads to a raise in unemployment rate.

Job Differentiation vs. Unemployment

Université du Québec en Outaouais and CIRANO, 283 boul. Alexandre-Taché, C.P. 1250, succursale Hull, Gatineau, Québec, Canada, J8X 3X7, and CIRANO, Montréal, Canada,

Review of Economic Perspectives

{"article-title":"Job Differentiation vs. Unemployment"}

We use a matching model in which the horizontal job differentiation results from the rationale response of firms to the state of the labor market. We show that...

Job Differentiation vs. Unemployment

Published Online: Apr 20, 2013

Page range: 30 - 42

DOI: https://doi.org/10.2478/v10135-012-0014-6

Keywords
Job Differentiation, Productivity, Matching, Unemployment

This content is open access.

Job Differentiation vs. Unemployment

Published Online: Apr 20, 2013

Page range: 30 - 42

DOI: https://doi.org/10.2478/v10135-012-0014-6

KeywordsJob Differentiation, Productivity, Matching, Unemployment

This content is open access.

Keywords
Job Differentiation, Productivity, Matching, Unemployment