labor market frictions. We characterize the distributions of employment, unemployment, wages and income within and between … sectors as a function of structural parameters. We find that greater firm heterogeneity increases unemployment, wage … frictions have non-monotonic effects on aggregate unemployment and inequality through within- and between-sector components …

We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two … sectors and heterogeneous firms. This allows us to study the distributional consequences and the skill-specific unemployment … real wages and unemployment levels in the unskilled labor intensive sector. However, the inequality of workers between …

We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two … sectors and heterogeneous firms. This allows us to study the distributional consequences and the skill-specific unemployment … real wages and unemployment levels in the unskilled labor intensive sector. However, the inequality of workers between …