We set up a search and matching model with private public sector to understand the effects of employment wage policies in on unemployment education decisions. The educational composition labor force depend crucially structure market. An increase skilled public-sector wages has small positive impact larger negative workers, if two sectors are segmented. If there movements across sectors, it larg...

eginning with the important work of Murphy and Welch (1992), a great deal of recent research has attempted to document and explain the dramatic changes in the wage distribution that occurred during the 1980s (see also Katz and Murphy 1992). Practically every income group faced a decline in real wages during the 1980s. However, workers at the 33rd percentile experienced a 14 percent drop in the ...

Information technologies (IT) may substitute for routine/manual tasks and complement complex/problem-solving tasks, which can induce bias towards greater demand for skilled labor. This phenomenon of “skill-biased technical change” has important implications for the impact of IT on factor substitution within a firm’s production process. Understanding how the substitution and complementarity rela...

The theoretical insights of Heckscher and Ohlin, Feenstra and Hanson, and Tang and Wood between them provide a plausible explanation of the varied effects of globalisation on wage inequalities in developed and developing countries. In combination, these three theories can explain, among other things, why inequality has fallen in some developing countries but risen in others. Improved travel and...

Test of digit retention was carried out to investigate if the usually accepted norm of 7 forward digit retention holds true in our population. The highest mean score of 8.85 was obtained by executives. Professionals scored a mean of 8.08 followed by students (7.81). Housewives, skilled workers and unskilled workers scored less than the accepted norm of 7 digit forward retention. A strong influe...

South Africa's manufacturing sector experiences declining growth and labour demand, increased imports of intermediate goods. The paper investigates the influence offshoring on employment wages for capital- labour-intensive industries skilled unskilled workers, using firm- employer–employee-level data. Unlike findings in developed countries, generally lowers firms increases decreases percentage ...

Depending on the design of the domestic pension system and the type of immigrants, voters will decide differently on immigration policy. In this paper, we investigate the voting outcome of three groups of heterogenous voters (skilled workers, unskilled workers, and retirees) under Beveridgian or Bismarckian pension systems which are either of the fixed contribution rate or the fixed replacement...

In this paper, using a production framework in which skilled and unskilled labor are imperfect substitutes, we analyze the time paths of the efficiencies of skilled and unskilled labor and their implications for wage inequality and economic growth. We find no evidence that supports the common view that there has been an acceleration in skilled biased technical change. Indeed, after 1973 the eff...

This note estimates the long-run demand for skilled and unskilled labor using panel data for Colombian manufacturing plants. Unobserved heterogeneity and measurement error problems that commonly arise in microdata production estimates are examined. Output measurement errors cause OLS estimators to underestimate the output and wage response of employment demand. Time-difference estimators exagge...

The paper examines the gains from North-South trade and their distribution. In a `new growth, new trade' framework, we examine the factors that determine four phases or stages of development in the South as equilibria: specialisation in a traditional good; the South in addition copies Northern innovative manufactured goods; the South begins to innovate in its own right and nally a stage in whic...