minimum wage causes more unemployment, but also leads to more skill formation as unemployment is concentrated on low … gains of more skill formation outweigh the social welfare losses of increased unemployment. Using a highly conservative …

choice of education is determined endogenously. Job opportunities in an informal sector are available only to workers who … choose not to acquire higher education. We find that increased punishment of informal activities increases the number of …

ability, and the choice of education is determined endogenously. Job opportunities in an informal sector are available only to … workers who choose not to acquire higher education. We find that increased punishment of informal activities increases the …

This paper studies a two-region model in which unemployment, education decisions and interregional migration are … change reduces wages of the unskilled. Both education and migration decisions are distorted by a uniform unemployment … endogenous. The poorer region exhibits both lower wages and higher unemployment rates, and migrants to the richer region are …