Using a three-sector general equilibrium model with non-traded goods, we investigate the impact of foreign direct investment on the real wages of skilled and unskilled workers. We show that foreign direct investment increases the real wages of skilled and unskilled workers, but widens the gap...

In this paper we construct a general equilibrium model of trade and illustrate that return to unskilled labor may be negatively correlated with the price of product it produces. Specifically, we show that greater protection for the intermediate good that uses “unskilled” labor can reduce the...

We study the impacts of terms trade changes on absolute and the real wages of skilled and unskilled labor and their gaps for an economy specialized in export production. We show an interesting result where wage behavior as well as the skilled-unskilled wage gap depend on elasticity of import...

We provide an analysis of the impact of migration on the skilled- unskilled wage gap. In particular, we show the possibility of a rise in the wage gap following the migration of skilled (unskilled ) labor.

We provide an analysis of the impact of migration on the skilled- unskilled wage gap. In particular, we show the possibility of a rise in the wage gap following the migration of skilled (unskilled ) labor.

We construct a model whereby stock exchanges take a new role as an information intermediary, notably absent in their roles. We show that exchanges differentiate themselves at subgame perfect equilibrium and will not race to the top or the bottom.

By bridging the gap between the strategic model of sanctions and the public choice framework of sanctions, we introduce a new sanctions game. Contrary to an earlier finding, we show that the partial compliance of the target country along with mild sanctions are not only equilibrium, but also...

Using a three-sector general equilibrium model with non-traded goods, we investigate the impact of foreign direct investment on the real wages of skilled and unskilled workers. We show that foreign direct investment increases the real wages of skilled and unskilled workers, but widens the gap...

The pro-competitive effects of international trade in the presence of monopoly, and the deleterious effects of protection, are topics commonly taught in both international trade and industrial organization classes. We present a numerical simulation model for classroom use, built in Excel, that...

We propose a competitive general equilibrium theory of gender discrimination in labor market where male and female workers are equally productive, but the female workers are deliberately paid less than the male due to subjective discrimination. Pioneering works of Becker (1957) and Arrow (1973),...