work which has examined the association between employee wages and unemployment - the "wage curve". … enter into employment, and unemployment in the local area district. Largely unexplored in the literature this adds to the …

of large flows between employment, unemployment and inactivity. Secondly, it shows that unemployment and aggregate wages …This paper explicitly differentiates between unemployment and inactivity, by defining inactivity as a state in which … labor market states. In steady-state, we hence have a theory of equilibrium unemployment determined by both matching …