Although the wage distribution is central to analysing inequality issues, the provision of public services destined for t he poor can make an essential difference in evaluating inequality in welfare rather than in income. Whereas raising taxes to fund public services would lead to a...

The aim of this work is to analyse the general equilibrium effects of terms of trade shocks in exportable sectors under particular assumptions about labour market. The model used is based on the Blacke et al. (1995) model of the Mauritian economy, modelled as consisting of three productive...

Standard trade theory suggests that trade liberalization produces opposite effects on human capital accumulation in developed and developing countries, reducing the incentives to invest in education in skill-scarce countries. How would conventional wisdom be modified if we introduce public...

The evidence of effects of education activities on growth is mixed. So, could education be good, neutral, or bad, depending on the case? While the model in this paper remains close to the Heckscher-Ohlin tradition, it is shown that, contrary to the standard results, it is the net effect of...

Are early leavers from the education system irrational or ill informed? They might be, but this approach shows that with underperforming education sectors – typical in developing countries – early dropout may be perfectly rational and well informed, even in the absence of liquidity...

This paper reviews the literature that relates trade, education and skills formation,intending to provide a theoretical background to policy discussions in education matters. The paper is organised as follows. Section 1 summarises the literature on education and human capital in trade models....

The ratio of skill to unskilled labour stocks in the economy is widely acknowledged to have an important role for development. Can education policy affect the evolution of this ratio? This paper shows that it can, and it also shows that the actual effect of education policy depends on the...