The literature on unemployment has mostly focused on labor market issues while the impact of capital formation is largely neglected. Job-creation is often thought to be a matter of encouraging more employment on a given capital stock. In contrast, this paper explicitly deals with the long-run...

Capital deepening may affect the evolution of the wage differential between skilled and unskilled workers differently in countries with different labor market institutions. If labor market institutions raise the relative wage of unskilled workers in Germany, firms have incentives to invest...

Labour market flexibility is the key to sustainable economic development in advanced economies. The factor price frontier is used to analyse labour market adjustment in Ireland from the sixties to the present. The theoretical and empirical analysis lend support to the wideheld belief that...