Helpman, Elhanan; Itskhoki, Oleg; Redding, Stephen J. - C.E.P.R. Discussion Papers - 2011
This paper reviews a new framework for analyzing the interrelationship between inequality, unemployment, labor market … reductions in labor market frictions increase a country's welfare, can raise or reduce its unemployment rate, yet always hurt the … country's trade partner. Unemployment benefits can alleviate the distortions in a country's labor market in some cases but not …