We derive a tractable nonlinear earnings function which we estimate separately for each individual in the NLSY79 data. These estimates yield five important parameters for each individual: three ability measures (two representing the ability to learn and one the ability to earn), a rate of skill...

This paper extends the analysis of the conflict-trade relationship by introducing foreign direct investment (FDI). We present a formal model that shows why FDI can improve international relations. We then proceed to test the model empirically. Our empirical results in fact show that foreign...

Front Cover -- Inequality: Causes and Consequences -- Copyright page -- Contents -- Editorial Advisory Board -- Preface -- Inequality of Opportunity in Europe: Is There a Role for Institutions? -- 1. Introduction -- 2. Measuring Opportunity Inequality: A Simple Model -- 3. The Empirical...

The 2008 global financial and economic crisis led to a significant increase in unemployment rates in most developed economies, yet despite the rising supply of labor, a high share of employers claim that they cannot find the right talent and skills. Concerns that economic restructuring and...