This paper makes three contributions. First, on the technical side, I adapt and extend numerical techniques to solve a Lucas & Prescott (1974) type of model with a sufficiently large number of islands and aggregate uncertainty. The main difficulty in these models is that the whole distribution...

Reduced dynamism in the labor market is consistent not only with more stable, longer-lived jobs but also longer joblessness and less job switching.

A question often on people’s minds is whether the unemployment rate is capturing all the relevant information on the health of the labor market these days. Are any of the other standard indicators any better? What do indexes that measure labor market conditions tell us?

Income inequality has increased in the St. Louis Fed's District over the past 30 years, although at a slower pace than in the nation as a whole. In both areas, the inequality is increasing primarily between the top-income earners and the middle-income earners.

We develop a dynamic labor search model where production and consumption take place in spatially distinct labor markets with varying exposure to domestic and international trade. The model recognizes the role of labor mobility frictions, goods mobility frictions, geographic factors, and...

We develop a dynamic labor search model where production and consumption take place in spatially distinct labor markets with varying exposure to domestic and international trade. The model recognizes the role of labor mobility frictions, goods mobility frictions, geographic factors, and...