This thesis considers two modern phenomena that could be contributing to the growing inequality in labour market outcomes: globalisation and urbanisation. In the first part of the thesis, co-authored with Céline Carrère and Fréféric Robert-Nicoud, we consider how globalisation might have heterogenous effects on unemployment across different labour markets. We develop a multi-country, multi-sector trade model with labour market frictions and equilibrium unemployment. We calibrate this model and quantify the potential unemployment and wage effects of implementing TTIP and TPP trade agreements, and of repealing NAFTA. In the second part of the thesis, I investigate the role of urbanisation and agglomeration economies in driving wage inequality across space. Specifically, I study how the distribution of earnings across space depends on the nature of job requirements. Using rich administrative data for Germany, I find that more abstract occupations are characterised by a higher elasticity of earnings with respect to population size.