This paper develops a simple framework for examining human capital accumulation, unemployment, and relative wages in a …, technical change, and a productivity slowdown. We derive the consequences for the skilled-to unskilled wage gap, unemployment …

positions and thus wages and a negative one as faster outflows from unemployment reduce the stock of unemployed. Thus, there is … to increase the rate of exit to employment of the long-term unemployed. Exit rates from long- and short-term unemployment … have two effects on the unemployment rate: a positive one as high exit rates strengthen current employees' bargaining …

, the wage rate, hours of work, and hours of unemployment. The framework is used to investigate how much of the residual … variation in labor income is due to residual variation in the wage rate, work hours, and unemployment hours. I also explore the … unemployment) are about equally important in the short run. Wage innovations are very persistent, while the effect of changes in …

heterogeneity, job-specific error components in both wages and hours, and measurement error. We use the model to address a number of … important questions in labor economics, including the source of the experience profile of wages, the response of job changes to … although job seniority and job mobility also play significant roles. Unemployment shocks have a large impact on earnings in the …