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 special case in which prices are sticky and wages are perfectly flexible. When the model is calibrated to exhibit an …

nominal wages. This finding contrasts with results obtained using standard sticky-wage models, which employ Walrasian labor … tolerate large fluctuations in real wages that would otherwise not be tolerated in a standard model with Walrasian labor … markets; as a result, any concern for stabilizing nominal wages does not translate into a concern for stabilizing nominal …

utility calculations. There is a stabilization problem because there are one-period nominal contracts for wages, or prices, or …