Walrasian markets. It is argued in this paper that in the absence of a Walrasian auctioneer to coordinate trade: (i) wage …, equilibrium wage dispersion is necessary for the economy to approximate efficiency. Without wage dispersion, workers do not search …

distortion in the wage structure turns ``technologically'' general skills into ``specific'' skills. Labor market frictions and … institutions, such as minimum wages and union wage setting, are crucial in shaping the wage structure, and thus have an important …

, because they prevent these workers from taking wage cuts necessary to finance training. We show that when the assumption of …, by inducing firms to train their unskilled employees. More generally, a minimum wage increases training for con …-strained workers, while reducing it for those taking wage cuts to finance their training. We provide new estimates on the impact of the …

This paper offers an alternative theory for the increase in unemployment and wage inequality experienced in the United …

this setting the skill, job and wage distributions and their evolutions are endogenized. The presence of search frictions … is higher for firms, unskilled wages are pushed down. These forces lead to a non-ergodic equilibrium process for wage and … income inequality. The model also predicts that increasing wage inequality is more likely to arise in economies with less …

directed technical change for residual wage inequality and shows that calculations of the impact of international trade on …

introduces a negative wage formation externality which may lead to excessively fast diffusion of new technologies. …

-sharing due to search frictions implies that ‘good’ jobs which have higher creation costs must pay higher wages. This wage …