In this paper, we consider whether or not inequality forces society to expend more resources on supervision which imposes an extra cost to doing business. Some argue that since inequality deteriorates social capital, there is a greater need for supervisory labor which is a costly burden to bear....

This paper studies how trade openness affects welfare through changes in workers’ skill acquisition. We first document that on-the-job training participation varies largely across sectors and that schooling investments are complementary to on-the-job learning. Thus, trade openness impacts...

In this paper we construct a Ricardian model of trade in vertically-differentiated products between a developing country and the (developed) rest of the world. Despite labour being the only factor of production in this model, tariffs (in addition to income taxes) have distributional consequences...