knowledge sector is bounded, as productivity increases, the economy moves from a "Solovian zone" where wages increase with … bliss point can only be made better-off by an increase in diversity. If wages are set by monopoly unions rather than set … employment in the material goods sector. International trade may reduce wages in poor countries and increase them in rich …

whereby unemployment affects investment and growth. The model generates a growth unemployment rate trade-off. A reduced … propensity to save raises growth but it also raises the unemployment rate because of induced technological progress. This … unemployment affects income distribution; introduction of a Phillips curve and inflation effects; and introduction of demand growth …

unemployment, which lowers wages and creates incentives for future investment in labor-using technologies. In the long run, this …, this change leads to faster growth in output per worker and wages, but it also yields higher unemployment and a lower labor …I construct and analyze a growth model in which technical change can increase unemployment. I first analyze the forces …