We introduce international labor mobility in a three-sector general equilibrium model with rural-urban migration. We demonstrate that under some reasonable conditions an inflow of foreign skilled labor (capital) can reduce skilled-unskilled wage inequality.

The authors apply Gregory C. Chow's (1989) technique to the present value model of hyperinflation under rational and adaptive expectation hypotheses. They use the monthly data on price and money supply of Germany (1921:5-1923:8), Hungary (1921:10-1924:2), and Poland (1922:1-1924:1). The authors'...

In this article we provide a theoretical analysis of the possible impact of trade and fragmentation on the skilled--unskilled wage gap in a small developing economy. In particular, we illustrate the possibility of a decline in the relative wage of the unskilled labor following an improvement in...

In the context of non-diversifiable and sector-specific risks in labour markets, we show that the resulting factor market distortion - attributable to an endogenous intersectoral wage differential - can provide a possible rationale that explains why larger wage dispersion prevails in developing...

In terms of a simple model, it is shown that the growth in the export processing zone through an influx of foreign-owned capital reduces welfare for an economy importing capital-intensive goods and following a protectionary policy. Similarly, it follows that growth in the export-processing zone...

In this paper, by using a generalized Harris-Todaro model that incorporates an urban non-polluting sector, and supposes a dual economy inherent in an LDC, we examine the backward incidence of pollution control on some key variables of interest. Given a relatively capital intensive polluting...

A small open economy operates with a unionized fixed wage import-competing sector and an informal “self-employed” sector or “small-firm” sector with perfect capital mobility between the two. Productivity varies across people in the flex wage sector. We first characterize an...

By bridging the gap between the strategic model of sanctions and the public choice framework of sanctions, we introduce a new sanctions game. Contrary to an earlier finding, we show that the partial compliance of the target country along with mild sanctions are not only equilibrium, but also...