Wages, Unemployment and Inequality with Heterogeneous Firms and Workers
---- Acknowledgments ----
The work on this paper started when Redding was a Visiting Professor at Harvard University. Helpman thanks the National Science Foundation for financial support. Redding thanks the Centre for Economic Performance at the London School of Economics for financial support. We thank Larry Katz, Steve Pischke and seminar participants at CIFAR and Harvard for helpful comments and suggestions. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.