This paper presents a general-equilibrium model of endogenous skilled-biased technological change and matching unemployment in a disaggregated economy. We simultaneously endogenise both the direction and pace of technological change as well as the unemployment rates. We show that an increase in...

This paper develops a general equilibrium dual labour market model which incorporates union bargaining with monopolistically competitive firms. It is shown that not only the degree of union bargaining power but also the market power firms possess on the product market have a positive influence...

We extend the standard quality-ladder model with heterogeneous workers by including efficiency wages and unions. We find that higher union bargaining power leads to a negative relationship between growth and unemployment. An increase in the supply of human capital, however, on the one hand...