large data sets from the U.S., Britain, and western Germany to test the Krugman hypothesis for the 1990s, when unemployment …Rising wage inequality in the U.S. and Britain (especially in the 1980s) and rising continental European unemployment … in Germany increased (unlike in the U.S. and Britain, where it fell). British and German evidence is further backed up …

We develop a growth model with unemployment due to imperfections in the labor market. In this model, wage inertia and …

employer and may choose to remain unemployed rather than to accept a low-wage job. In this case, unemployment can serve as a … signal of productivity, and duration of unemployment may be positively related to post-laid-off wages even among workers who … are not recalled. In contrast, because workers whose plant closed cannot be recalled, longer unemployment for them should …

little employment protection and low unemployment benefits, while the European model (generous benefits and higher duration …

negatively selected on unobservables. A beneficial (unemployment-duration reducing) causal effect of internet job search is …