Europe is a continent of cities with a remarkable history of cultural inspiration, wealth creation, social and politicaldynamism. But in the late-20th century, many former industrial cities entered a period of steep decline, losingmost of their manufacturing jobs and many of their economic...

This paper analyzes the joint effect of EPL and financial market imperfections on investment,capital-labour substitution, labour productivity and job reallocation in a cross-countryframework. In the spirit of Rajan and Zingales (1998) and Ciccone and Papaioannou (2006),we exploit variation in...

The paper draws upon the work of T.W. Schultz to show that human capital theory andlabor market adjustments have important implications for investing in people for the 21st Century.[...]

By assuming Cobb-Douglas production technology, many well-known imperfectlycompetitive macroeconomic models of the labour market (e.g. Layard, Nickell andJackman, 1991) imply that equilibrium unemployment is independent of the capitalstock. This paper introduces a new notion of capacity into the...