Wage Dispersion and Efficiency. It is often assumed that markets generate efficient allocations, but these are not necessarily fair. The widening of wage differentials that is currently observed is interpreted in this manner: Skill-biased technological progress increases demand for skilled work...

Based on a survey of 9,000 formal sector workers undertaken in 1990. Looks at the relationship between wage levels and educational levels (finding high returns to education), and wage levels and occupation.

Shows that since the late 1970s wage distribution is shifting downhill and becoming more skewed, with a proliferation of low-income employment.

This 2008 Article IV Consultation highlights that Tonga’s economy has shown resilience in the aftermath of the November 2006 riots and is now on a path to recovery. The key factor underpinning this resilience has been private investment. Donor-supported government reconstruction loans are...