Minimum wages, global markets, unemployment …

In this paper we revisit the influential theory of monopolistic competition and optimum product variety as developed by …-Stiglitz-Krugman model. Later we reflect on wage inequality and unemployment providing some interesting results. …

"The labor markets of important OECD countries show a similar picture: high wages and low unemployment for skilled … workers and low wages but high unemployment for low-skilled workers. During the last 10 years this fact has been studied under …

between and within skill categories, as well as an increase in unemployment, especially among low-skill workers. Movements in … productivity, unemployment and inequality may thus be linked to induced overeducation and credentialism. …

unskilled workers in the flexiwage economy and lower the unemployment in the minimum wage economy. This follows because … unemployment may be a source of competitive advantage due to the income effect. If the two countries differ only in terms of factor … endowments (but operate the same minimum wage) free trade moves the two countries towards an equalisation of unemployment. …