Abstract
This paper presents a two-sector model of job matching in which jobs are of two types distinguished by their accessibility to uneducated workers and by their productivity. Education confers two related benefits to workers: broader access to jobs, and higher lifetime earnings. The model determines the aggregate level of education in the economy, the aggregate human capital requirements of industry and the distribution of unemployment between educated and uneducated workers. The paper then addresses the issues of equilibrium unemployment and the incidence of unemployment in the steady-state.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
