Must We Choose? European Unemployment, American Inequality and the Impact of Education and Labour Market Institutions
In the last fifteen years two equilibria have arisen in the advaced world. On the one hand, wage dispersion has widened in those countries where unemployment has remained low (with cyclical variation). On the other hand, wherever income inequality has remained unchaged, unemployment has shot upwards. To account for there distinct patterns, a combination of current theories - focusing separately on either technological and trade shocks or institutional arrangements - is required.
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