Several empirical studies in the literature have documented the existence of a positive correlation between income inequalitiy and unemployment. I provide a theoretical framework under which this correlation can be better understood. The analysis is based on a dynamic job search under...

Several empirical studies in the literature have documented the existence of a positive correlation between income inequality and unemployment. I provide a theoretical framework under which this correlation can be better understood. The analysis is based on a dynamic job search under...

A vast empirical literature implies that increases in unemployment have an aggravating impact on income inequality, whence international and intertemporal inequality comparisons might be sometimes biased. We show how job-search models can be useful in better understanding this fact. In fact, in...