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 …

competition, search and matching in its labor market, and wage bargaining. Some of the workers searching for jobs end up being … unemployed. Countries are similar except for frictions in their labor markets, which include efficiency of matching, cost of … vacancies, firing costs, and unemployment benefits. We study the interaction of labor market rigidities and trade impediments in …

labor market frictions and worker heterogeneity provides a framework for studying the impact of trade on unemployment and …

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