The purpose of this paper is to analyse the impact of the unions' bargaining power on production and wages. In our model a competitive final good is produced from two substitutable intermediate goods. One of them is produced in a unionized unskilled sector and the other in a unionized skilled...

The classical occupational choice model does not explain the simultaneous existence of low and high ability entrepreneurs. In this paper, we study the decision to become an entrepreneur when individuals choose their education level and the economic sector where to operate. We distinguish two...

Promotion of entrepreneurial skills among the population is often considered as an adequate policy to enhance job creation and economic growth. However, neither the definition of entrepreneurial skills, nor the costs and benefits of such a policy are clear. Our aim is to check whether the...

Technological progress has been shown to affect early retirement via two opposite forces. On the one hand, it increases real wages and, therefore, creates incentives to delay retirement. On the other hand, it causes an erosion of workers' skills, which raises the probability of early retirement....