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Technology and the Decline in Demand for Unskilled Labour

A Theoretical Analysis of the US and European Labour Markets Mark Sanders, Senior Research Fellow, Entrepreneurship, Growth and Public Policy Group, Max Planck Institute for Research into Economic Systems, Jena, Germany and affiliated with the Utrecht School of Economics, Utrecht, The Netherlands
The position of low skilled workers in the labour market has deteriorated significantly over the past three decades. What has caused this deterioration in low skilled labour demand and what can explain the different labour market responses throughout the OECD? Mark Sanders addresses these questions and evaluates proposed policies to improve upon the present situation and prevent further deterioration in the future.
Extent: 264 pp
Hardback Price: £84.00 Web: £75.60
Publication Date: 2005
ISBN: 978 1 84542 132 8
Availability: In Stock
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  • Economics and Finance
  • Economics of Innovation
  • Labour Economics
  • Innovation and Technology
  • Economics of Innovation
The position of low skilled workers in the labour market has deteriorated significantly over the past three decades. What has caused this deterioration in low skilled labour demand and what can explain the different labour market responses throughout the OECD? Mark Sanders addresses these questions and evaluates proposed policies to improve upon the present situation and prevent further deterioration in the future.

The author develops a theoretical framework that produces two hypotheses to explain the shift in relative demand as well as the different ways in which this shift has manifested itself. The framework is then extended by introducing unemployment, and additional hypotheses are proposed to explain the main EU–US differences. The dynamics thus uncovered yield somewhat unorthodox policy implications on income-, labour market and technology policies in Europe and the US.

This comprehensive book will appeal to both scholars and academics, whilst graduate and PhD-students looking for an accessible introduction to modelling the dynamics of technical change and its interactions with the labour market will find it of great interest.
‘Mark Sanders’s effort is a challenging and successful attempt to analyse the evolution of labour market characteristics in developed countries with a specific focus on the unskilled and skilled categories of workers. . . The effort of Sanders to bring together different streams of the literature is a success. I would recommend reading the book to anyone interested in a comprehensive analysis of the relationship between technological change and labour markets.’
– Mariacristina Piva, Research Policy

‘This book treats a major issue – accounting for the differential run-up of the educational wage premium in the US and Europe since the 1970s – which is important from the point of view of economic policy and also from the point of view of economic theory. The author does a heroic job of surveying several vast literatures that bear on the issue.’
– Peter Howitt, Brown University, US
Contents: Preface 1. General Overview: Facts and Hypotheses Part I: Technical Change and Labour Demand 2. The Economics of Technical Change 3. Modelling Endogenous Technical Change 4. Technical Change and Labour Demand Part II: Technical Change and the Labour Market 5. The Labour Market 6. The Model Extended Part III: The Role of Government 7. The Government in the Model 8. Summary and Conclusion References Index