There is widespread concern currently that some ethnic minority communities within Britain, especially Muslim, are not following the stereotypical immigrant path of economic and cultural assimilation into British society. Indeed, many seem to have the impression that differences between Muslims...

Wages are only mildly cyclical, implying that shocks to labour demand have a larger short-run impact on unemployment rather than wages, at odds with the quantitative predictions of the canonical search model – even if wages are only occasionally renegotiated. We argue that one source of the...