We first demonstrate that, within a fully integrated economy (FIE) in which there is free mobility of goods and factors, each FIE member's share of total FIE output will equal its shares of the total FIE stock of each productive factor. This equal-share property implies that, if economic...

This discussion paper led to a forthcoming publication in </I>Journal of Regional Science</I> entitled 'Are EU Countries less Integrated than US States? Theory and Evidence'.<P> European economic integration is commonly believed to be incomplete, and that further reforms are needed. In this context, the...</p>

We show that in a fully integrated economy, in which there is free mobility of goods and factors, each member’s share of total output will equal its shares of total stocks of productive factors (i.e., physical and human capital). We label this result the equal-share relationship. This...

In our increasingly interconnected and open world, international migration is becoming an important socio-economic phenomenon for many countries. Since the early 1980s, many studies have been undertaken of the impact of immigration on host labour markets. Borjas (2003) noted that the estimated...

In this paper we demonstrate that intra-industry trade (or FDI) between identical countries could produce the observed deterioration in the relative wages of unskilled workers. This involves a model of North-North integration through either increased trade flows or increased MNE- based...

How valuable is education for entrepreneurs’ performance as compared to employees’? What might explain any differences? And does education affect peoples’ occupational choices accordingly? We answer these questions based on a large panel of US labor force participants. We show that...

This paper examines the extent to which human capital theory can explain observed wage differentials in the Russian Federation. Wage and income dispersion have increased markedly in Russia in the six years since the transition began. Some studies conclude that this is an indicator that Russian...

We combine two empirical observations in a general equilibrium occupational choice model. The first is that entrepreneurs have more control than employees over the employment of and accruals from assets, such as human capital. The second observation is that entrepreneurs enjoy higher returns to...

In this paper we derive a structural measure for labor market density based on the Ellison and Glasear (1997) "Index for industry concentration". This labor market density measure serves as a proxy for the number of workers that can reach a certain work area within a reasonal amount of traveling...

Despite the pervasive phenomenon of scale economies the majority of firms has always been small firms. The emergence of small firms as a means of economic development on both sides of the Atlantic has been one of the major new topics of economic policy since the 1980s. This has drawn renewed...