Corporate success often resembles a snowball. We show how initial luck in hiring talented people, the resulting technological advantage, superior corporate culture, and status-seeking by workers can make small initial differences generate large differences over time.

The book offers an explanation of unemployment based on a model of wage bargaining between a trade union and an employers' association. The theoretical model emphasizes the importance of distributional fairness in wage negotiations, especially with regard to factor taxation. This is achieved by...