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theory of contract. Finally, the empirical literature on employment and labor law is reviewed. I conclude that many aspects … of employment law are consistent with the economic theory of contract - namely, that contracts are written and enforced …
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A two country model of trade between a flexiwage and a minimum wage economy or two mmjmum wage economies is developed. The main novelty is that there are three factors of production: capital, skilled and unskilled labour. This unlocks the terms of trade. Unskilled labour is subject to the same...
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