Abstract:JEL Code: J64; O33; O49.Our objective is to study, in a labor market characterized by search frictions, the effect of technological progress on the average quality of job matches. For that, we use an extension of Mortensen and Pissarides (1998) and obtain as results that the effects of technological progress on the labor market depend upon the initial conditions of the economy. If the economy is totally characterized by the presence of low-quality job matches, an increase in technological progress is accompani… Show more
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