This paper develops a simple framework for examining human capital accumulation, unemployment, and relative wages in a … global economy. It builds on the models of Davis (1997a, b) of trade between a flexible wage America and a rigid wage Europe …, technical change, and a productivity slowdown. We derive the consequences for the skilled-to-unskilled wage gap, unemployment …

This paper develops a simple framework for examining human capital accumulation, unemployment, and relative wages in a … global economy. It builds on the models of Davis (1997a, b) of trade between a flexible wage America and a rigid wage Europe …, technical change, and a productivity slowdown. We derive the consequences for the skilled-to-unskilled wage gap, unemployment …

, not equilibrium itself is studied. As a result, price rigidities and unemployment fluctuations are consequences of … maximize intertemporal social utility. Thus, we investigate the causes of price rigidities and unemployment fluctuations that … sectors. The reductions (increases) of factors demanded result in unemployment (vacancy) immediately after the price …