-run unemployment. In the short run, however, the union raises current wages above the efficient level, in order to appropriate …-perfect equilibrium, not only is unemployment well above its efficient level, but the union wage also exhibits endogenous real stickiness …

the three labor market states: employment, unemployment, and non-participation. We use it to study the implications of two … channel is key. A model with friction shocks only, calibrated to match unemployment fluctuations, accounts for only a small …

consistent with increasing inequality in every country, growth in residual wage inequality, rising unemployment, and reallocation … within and between industries. While the opening of trade yields welfare gains, unemployment and inequality within sectors … nonmonotonic effects on unemployment and inequality within sectors. As aggregate unemployment and inequality have within- and …

rigidities and trade impediments in shaping welfare, trade flows, productivity, price levels and unemployment rates. We show that … patterns of unemployment. Specifically, trade integration -- which benefits both countries -- may raise their rates of … unemployment. Moreover, differences in rates of unemployment do not necessarily reflect differences in labor market rigidities; the …

market frictions. We characterize the distributions of employment, unemployment, wages and income within and between sectors … as a function of structural parameters. We find that greater firm heterogeneity increases unemployment, wage inequality … frictions have non-monotonic effects on aggregate unemployment and inequality through within- and between-sector components …

Standard search and matching models of equilibrium unemployment, once properly calibrated, can generate only a small …