The paper develops a model in which employment is an enduring rent-sharing relationship. In each period rents are subject to a transient disturbance, and the parties weigh the future stream of benefits against current dis-benefits. The analysis suggests a strong correlation between real interest...

Yields to maturity of a set of nominal and index linked gilts are used to obtain estimates of the term structures of nominal and real interest rates. These allow calculation of the term structures of nominal and real interest rates. These also allow calculation of expected inflation. The...

This paper investigates the effect of minimum wages on employment using a panel of US state-based data. We estimate a minimalist dynamic version of the specification implied by neo-classical theory. We find statistically and economically significant effects of minimum wages on youth employment....

With diminishing returns to the peer group, it is optimal social policy to mix chldren in schools. We consider what happens when, contrary to the outcome being determined by a social planner, schools and children are free to seek each other out: with some caveats, this leads to perfect...

We study the biases that are likely to arise in practice with panel data when parameters vary across individuals, but this is not allowed for in estimation. We consider both stationary and non-stationary regressors. We find that biases can be severe for relatively small parameter variation, and...

In this paper we estimate an educational production function. Educational attainment is a function of three types of inputs: peer group, parental and schooling. We find that conventional measures of school quality are not good predictors for academic attainment, once we control for peer group...

The paper analyzes the effect on the unemployment rate of a number of labour market policy variables; in particular, minimum wages and the parameters of the unemployment benefit. We study the unemployment rates of the Canadian provinces for five demographic groups. We conclude the replacement...

Given recent emphasis on externality to education, macroeconomic studies have a role to play in the analysis of return to schooling. In this paper we study the connection between growth and human capital in a convergence regression for the panel of Italian regions. We include measures of...

The paper develops and estimates a small equilibrium model of the Canadian post-war labour market. The framework is imperfect competition in product and labour markets which, we argue, is forced upon us by the empirical fact that real wages do not on their own explain the business cycle. The...