We present a model with two Overlapping Generations (young and old) and two final goods: a) a tradable good that is produced using capital and labor, and b) a non-tradable good that is produced using labor as unique input. We maintain the fundamental assumption of perfect factor mobility between...

This paper uses Colombian household survey data collected over the 1984-2005 period to estimateGini coefficients and their corresponding standard errors. We find a statistically significant increase in wage income inequality following the adoption of the liberalization measures during the early...

We consider a model of factor saving innovations and study the effects of exogenous changes in labor supply. In a biased innovations setting, as economies accumulate capital, labor becomes relatively scarce and expensive. As a consequence, incentives for la-bor saving and capital using...