IZA World of Labor Panel discussion on inequality, unemployment, wage setting and inflation

IZA World of Labor Panel discussion on inequality, unemployment, wage setting and inflation with Richard Rogerson, Professor of Public and International Affairs at Princeton University, and Josef Zweimüller, Professor of Economics at the University of Zurich

Discussion questions:
- What do your findings about differences in inequality of earnings within occupations imply about such macroeconomic outcomes as unemployment and inflation?
- We know that it becomes more difficult for workers to leave unemployment the longer they have been unemployed. Is this because the very fact of having been unemployed longer signals employers that the worker is lazy or is it just that longer-term unemployed workers reduce their efforts to find work?
- What is this distinction between dynamic selection and negative duration dependence? Tell us about the role of subsidies for unemployed people to either be hired or to get off the roles faster – a number of countries do things like this. Does the answer depend upon which of these two phenomenon is going on?
- The world is currently facing fairly rapid inflation along with rapidly dropping unemployment rates. Is this a standard cyclical phenomenon, or is this something new? Are there any historical precedents for this?

Read related IZA World of Labor content:
- Todd Sorensen’s article Do firms’ wage-setting powers increase during recessions?
- Edward P. Lazear’s article Structural or cyclic? Labor markets in recessions

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