We introduce search unemployment à la Pissarides into Melitz’ (2003) model of trade with heterogeneous firms. We allow wages to be individually or collectively bargained and analytically solve for the equilibrium. We find that the selection effect of trade influences labor market outcomes....

Using two Dutch labour force surveys, employment assimilation of immigrants is examined. We observe marked differences between immigrants by source country. Non-western immigrants never reach parity with native Dutch. Even second generation immigrants never fully catch up...