This paper explores the effects of unemployment on the school enrolment decisions. A few studies that have taken up this issue in the past have produced results that are seemingly contradictory with each other. We build a model of the enrolment decision that is capable of explaining these...

The Welsh economy has undergone rapid structural change in recent years.This paper uses data from the New Earnings Survey to examine how earnings in Waleschanged relative to those of Great Britain between 1975 and 1994. There are five mainfindings. First, earnings of workers in Wales have...

I examine recent changes in labour markets and employment practices in Japan. I find little evidence that Japan is converging towards an Anglo-American type labour market. Mobility rates continue to be low, and there is little indication that this will change greatly in the future. Large firms...

An interesting puzzle is that trade liberalization in the 1980s and 1990s has been associated with a sharp increase in the skill premium in both developed and developing countries.This is in contrast with neoclassical theory, according to which trade should increase therelative return of the...

This paper discusses the place of oligopoly in international trade theory, and ar-gues that it is unsatisfactory to ignore …rms altogether, as in perfectly competitivemodels, or to view large …firms as more productive clones of small ones, as in monop-olistically competitive models. Doing...

We present a gravity model that accounts for multilateral resistance, firm heterogeneity and country-selectioninto trade, while accommodating asymmetries in trade flows. A new equation for the proportion of exporting…firms takes a gravity form: the extensive margin is also accected by...

We present a new model of multi-product …rms (MPFs) and flexible manufacturing and explore itsimplications in partial and general equilibrium. International trade integration a¤ects the scale andscope of MPFs through a competition e¤ect and a demand e¤ect. We demonstrate how MPFs adjust...

This paper analyses the implications of bargaining between buyers and sellers on the competitive outcome in a homogeneous good industry. Bargaining creates a competitive equilibrium in which some inefficient sellers coexist with efficient leading to productivity dispersion...