distorts occupational choice. We study this possibility in the context of a model with horizontal innovation, where the …

knowledge sector is bounded, as productivity increases, the economy moves from a "Solovian zone" where wages increase with … their bliss point can only be made better-off by an increase in diversity. If wages are set by monopoly unions rather than … always reduces employment in the material goods sector. International trade may reduce wages in poor countries and increase …

We extend the standard quality-ladder model with heterogeneous workers by including efficiency wages and unions. We …

employment. It is shown that the usual trade off between employment and wages disappears in the long run. In line with an …

and with endogenously determined long-term unemployed resulting from skill-depreciation. For innovation economies …