Helpman, Elhanan; Itskhoki, Oleg; Redding, Stephen - In: Journal of the European Economic Association 8 (2010) 2-3, pp. 421-433
wage inequality and unemployment vary across workers with different abilities. Both in the closed and open economy, the … unemployment rate is decreasing in worker ability, whereas both the average wage and wage inequality are increasing in worker … increases in unemployment rates relative to both lower and higher ability workers. (JEL: F12, F16, E24) (c) 2010 by the European …