In this paper, we examine three main questions concerning wages. First, how do wages of native workers depend on the skills of the worker and the characteristics of an economy? Second, what do differences between the characteristics of the US and the home country economies predict about the wage...

We investigate the welfare effects of eliminating business cycles in a model with substantial consumer heterogeneity. The heterogeneity arises from uninsurable idiosyncratic uncertainty in preferences and employment status. We distinguish between short- and long-term unemployment. Long-term...