Macroeconomic Implications of Shifts in the Relative Demand for Skills

6 Pages Posted: 16 Nov 2007

See all articles by Olivier J. Blanchard

Olivier J. Blanchard

National Bureau of Economic Research (NBER); Peter G. Peterson Institute for International Economics

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: wages, inequality, employment, education

JEL Classification: J31, J64, E62

Suggested Citation

Blanchard, Olivier J., Macroeconomic Implications of Shifts in the Relative Demand for Skills. Economic Policy Review, Vol. 1, No. 1, January 1995. Available at SSRN: https://ssrn.com/abstract=1029722

Olivier J. Blanchard (Contact Author)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Peter G. Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036
United States

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