The paper studies the effects of cross-country differences in the productionprocess of human capital on income distribution and growth. Our overlapping gen-erations economy has the following features: (1) consumers are heterogenous withrespect to parental human capital and wealth; (2)...

Insufficiently flexible labour markets combined with high welfare costs are often thought to be the main cause of unsatisfactory growth in Europe. This paper uses the OECD data on regulation of the product and labour market to confirm the difference in the extent of regulation between US and...

As the EU economies and societies become increasingly integrated, and as labour market behaviour patterns converge across borders, the EU strives to develop a substantially common social identity. To this end, it seeks to promote the development of a sustainable institutional framework which...