This paper presents a model in which wages throughout the economy depend only on the labour market conditions in some low-unemployment sector. In equilibrium, a labour demand shift towards the primary sector tends to raise the unemployment rate everywhere else in the economy and leaves wages...

According to Paul Krugman, “the European unemployment problem and the US inequality problem are two sides of the same coin”. In other words, both continents have had the same shift in demand towards skill; in the US relative wages have adjusted and in Europe not. The implication of this...

According to Paul Krugman, “the European unemployment problem and the US inequality problem are two sides of the same coin”. In other words, both continents have had the same shift in demand towards skill; in the US relative wages have adjusted and in Europe not. The implication of this...

This paper uses evidence on employment, labour force, and wage differentials by skills from a number of OECD countries to investigate on the characteristics and the consequences of a skill-biased shift in the structure of labour demand and labour supply. A convex relationship between wages...

This paper describes the functioning of a two-region economy characterized by asymmetric wage-setting. Labor market tightness in one region (the leading-region) affects wages in the whole economy. IN equilibrium, net labor demand shifts towards the leading region raise unemployment in the rest...

This paper presents a model in which wages throughout the economy depend only on the labour market conditions in some low-unemployment sector. In equilibrium, a labour demand shift towards the primary sector tends to raise the unemployment rate everywhere else in the economy and leaves wages...

According to Paul Krugman, "the European unemployment problem and the US inequality problem are two sides of the same coin". In other words, both continents have had the same shift in demand towards skill; in the US relative wages have adjusted and in Europe not. The implication of this...

This paper uses evidence on employment, labor force, and wage differentials by education from OECD countries to investigate the characteristics and the consequences of a skill-biased shift in the structure of labor demand and supply. The empirical analysis shows that there has been some increase...