How Segmented Are Skilled and Unskilled Labour Markets: The Case of Beveridge Curves

Melbourne Institute Working Paper No. 14/01

Date: November 2001


Lei Lei Song
Elizabeth Webster


This paper tests whether there is empirical evidence that two distinct Beveridge curves for the skilled and unskilled aggregate markets. The results support the dualism hypothesis and specifically find that the skilled labour segment is more efficient at matching workers with jobs and/or has lower turnover rates. Lower turnover rates may be indicative of a better prior match. It also found that other shift variables, such as the replacement rate, the incidence of long-term unemployment, the immigration rate and the market circumstances in the other segment, had differential effects on each curve.

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