This paper reviews a new framework for analyzing the interrelationship between inequality, unemployment, labor market …. It implies that the opening of trade may raise inequality and unemployment, but always raises welfare. Unilateral … reductions in labor market frictions increase a country's welfare, can raise or reduce its unemployment rate, yet always hurt the …

inequality and raises unemployment, but expected welfare gains are ensured if workers are risk neutral. And while wage inequality …

In the most widely analyzed type of efficiency wage model of involuntary unemployment, firms pay wages in excess of … equilibrium unemployment act as a worker discipline device. This paper concerns what is usually considered the most important … involuntary unemployment. Explicit upfront bonds are only quite rarely observed. A more subtle form of the bonding critique argues …

of unemployment spell durations. A job search model that allows for recalls is shown to lead naturally to a competing … risks specification of the distribution of layoff unemployment spell durations in which recall and the taking of a new job … are alternate routes for leaving unemployment. A large sample of individual layoff unemployment spell observations derived …

employment growth rates across sectors (G) and the unemployment rate implies that shifts in demand from some sectors to others … are responsible for a substantial fraction of cyclical variation in unemployment. This paper demonstrates that, under … the unemployment rate. Two tests are developed which permit one to distinquish between a pure sectoral shift …

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 …

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 …

of unemployment. It is this body of work we assess in this paper. We reach two main conclusions. First, there has been … think for example about the relation between technological progrss and unemployment. Second, empirical knowledge lags behind … countries. We look at two issues, the relation of wages to unemployment, and the risk of European unemployment …