higher wages. This increases firms' incentives to post more vacancies, which makes unemployment volatile and sensitive to … aggregate shocks. The model is robust to two major criticisms of existing theories of sluggish wages and volatile unemployment …I propose a new mechanism for sluggish wages based on workers' noisy information about the state of the economy. Wages …

limited network connections. The model implies that essentially similar workers can have markedly different wages and further … that the inequality of wages is partly explained by variations in the sizes of workers' networks. Our results indicate that … wages. We also show that reasonable differences in the average number of links between blacks and whites can explain the …