This paper investigates the interaction between education decisions by workers and investment decisions by firms in a random matching model with endogenous heterogeneity. I analyze the efficiency properties of the equilibrium and find that in the presence of search frictions and investment costs...

What has been the impact of the trade liberalization on the regional and industrial wage structure in Brazil? This paper attempts to shed light on the determinants of the evolution of wages during the period 1986-1999. We approach this question relying on the main insights of the new economic...

Chenery and Syrquin (1975) established the “stylized fact†about the evolution of the agricultural sector through the process of development, whereby agriculture’s share in national GDP tends to decline with development. Does this mean that from a policy point of view resources...