The authors show how an extended theory of fair wages can be incorporated in the two-by-two Heckscher-Ohlin model. An important feature of the model is the existence of involuntary unemployment. Several results stand out. First, there is no longer a simple relation between measures of factor...

We use a two-country version of the quality ladders endogenous growth model and show that free international migration raises world growth if it is driven by imbalances in labour supplies. International migration may, however, lower growth if it is induced by policy differences across,...

It is a common observation that unions often try to compress the wage distribution among their members as compared with the productivity distribution. A troublesome aspect of standard theories of redistributive unions is the question why high-productivity workers choose to enter the union in the...