Using employer-employee data covering the whole Swedish economy over a uniquely long time period from 1986 to 2002, we examine how job flows and worker flows have been distributed both on an aggregate level and across educational levels. We find that job and worker flows vary by educational...

This paper analyzes the role of income distribution in macroeconomic analysis. The study demonstrates that the long-run equilibrium depends on the initial distribution of income. In accordance with empirical evidence concerning the conelation between income distribution and output, an economy...