We examine how technological change affects wage inequality and unemployment in a calibrated model of matching …, and (ii) the total amount of wage inequality generated by frictions is very small. We explain these findings in light of …

strong incentives for product innovations (new luxuries). We show that the inequality-growth relationship depends on which …

excessive flexibility, resulting in suboptimal growth or even self-sustaining technology-inequality traps. Fourth, I examine how … configurations of technology, inequality and redistributive policy are feasible in the long run, when all three are endogenous. I … show in particular how the diffusion of technology leads to the ‘exporting’ of inequality across borders; and how this, in …