Economic growth and unemployment exhibit an ambiguous relationship – according to empirical studies. This ambiguity can be investigated by observing the role of the underground economy in shaping the productivity of firms. Indeed, unemployment may be absorbed by underground firms, which adopt...

A matching model will explain both unemployment and economic growth by considering the underground sector. Three problems can thus be simultaneously accounted for: (i) the persistence of underground economy, (ii) the ambiguous relationships between underground employment and unemployment, and...

This study extends a recent study on migration according to race, i.e., white migrants on the one hand and black migrants on the other hand. This study specifies that white migration should be treated as a function of white unemployment rate and white income levels, whereas black migration...

Although the case for treating human capital as a productive factor is clear, its introduction presents complications since ownership of (or property rights in) human capital cannot be separated from the ownership of (or property rights in) labor itself. Consider a two-region economy. When labor...

This study seeks to identify key determinants of the percent of the population enrolled in HMOs. The HMO enrollment rate is an increasing function of the unionization rate and female labor force participation rate, while being a decreasing function of the poverty rate, the unemployment rate, and...