We develop a model of self-employment in the search and matching frame-work of Mortensen and Pissarides. We integrate two strands of theoretical literature: models of self-employment and models of unemployment. Our model explains many empirical findings which are not explained by the existing...

Empirical evidence suggests that girls work more than boys as child labor. In this paper, we develop a model to analyze the causes and consequences of the gender differentials in child labor. In particular, we analyze the effects of gender bias on child labor. We find that when parents can give...

This paper analyzes the determinants of the rural non-farm employment in the fifteen major states of India by using panel data analysis for the period 1972-2010. The analysis indicates that there are significant gender differences in the factors affecting the level and the growth of rural...

This paper develops a two-period-two-country model in which an altruistic donor faces Samaritan's Dilemma to address two important policy questions: (i) whether foreign aid can lead to efficient level of capital investment in the recipient country and (ii) how do the form (e.g. budgetary...

In this paper, we study the effects of education on the total factor productivity (TFP) of a large number of countries. We estimate TFP using a variant of augmented Solow growth model in which health capital is one of the factors of production. We find that quantity of education significantly...

The optimal infation rate and the relationship between inflation and unemployment are central issues in macroeconomics. It is widely accepted that inflation is a monetary phenomenon. However, there is little consensus with regard to unemployment. Economists differ widely in their view of labor...

Empirical evidence suggests that inflation has positive effect on both output and unemployment in the long run in the United States. This paper develops a monetary model in which a higher inflation rate increases both output and unemployment. The model has two key features: (i) separation...

Aid by altruistic donors may induce recipients to reduce their own contribution to development efforts in order to elicit more aid from donors. Help by well-intentioned donors may reduce the welfare of needy. Donors may not be able to deter deviant recipients as any punishment involves reducing...