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Using a human capital based growth model, we show the essential role of labor mobility and cross-country tax harmonization in equalizing income levels of countries that start off from different initial income positions. Knowledge spillovers cum labor mobility are the driving forces behind the...
Persistent link: https://www.econbiz.de/10012473431
The human capital of young and old workers are imperfect substitutes both in production and in on-the-job training. This helps explain why capital does not flow from rich to poor countries, causing instantaneous convergence of per capita output. If each generation chooses its human capital...
Persistent link: https://www.econbiz.de/10012474088
We consider a model with several regions whose technological ability and factor endowments are identical and in which transport costs between regions are non-negligible. Nonetheless, certain goods are sometimes produced by multiple firms all of which are located in the same region. These goods...
Persistent link: https://www.econbiz.de/10012475809
Persistent link: https://www.econbiz.de/10012477414
This paper develops a simple framework for examining human capital accumulation, unemployment, and relative wages in a …, technical change, and a productivity slowdown. We derive the consequences for the skilled-to-unskilled wage gap, unemployment …
Persistent link: https://www.econbiz.de/10012472680
A major benefit of education is the lower risk of unemployment at higher educational levels. In PSID (Panel Study of … Income Dynamics) data on the male labor force1 the reduction of the incidence of unemployment is found to be far more … important than the reduced duration of unemployment in creating the educational differentials in unemployment rates. In turn …
Persistent link: https://www.econbiz.de/10012475155
The more education, the less unemployment of women; this relationship is as strong as it is in the male labor force … unemployment. However, the relation between education and turnover is mediated largely by educational differences in on … duration of unemployment are negligible among women, though they are observable, if small, among men. Recent growth in women …
Persistent link: https://www.econbiz.de/10012475156
workers are unemployed. Both the reemployment hazard rate and reemployment earnings steadily fall with unemployment duration …
Persistent link: https://www.econbiz.de/10014250138
Why did per capita income divergence occur so dramatically during the 19th Century, rather than at the outset of the Industrial Revolution? How were some countries able to reverse this trend during the globalization of the late 20th Century? To answer these questions, this paper develops a...
Persistent link: https://www.econbiz.de/10012479692
W. Arthur Lewis argued that a new international economic order emerged between 1870 and 1913, and that global terms of trade forces produced rising primary product specialization and de-industrialization in the poor periphery. More recently, modern economists argue that volatility reduces growth...
Persistent link: https://www.econbiz.de/10012464805