Geographically concentrated industry activity creates pools of skilled labor and specialized suppliers, and increases opportunities for knowledge spillovers. The strategic value of these agglomeration economies may vary by firm, depending upon the relative value of each economy, and upon firm and agglomeration economy traits. To better determine when a firm will be attracted to agglomeration ec...

The paper uses data from the annual British General Household Survey to examine changes in the structure of weekly earnings for full-time male employees aged 16 to 64 during the period 1974-1988. The principal findings are: (1) earnings inequality fell slightly in the second half of the 1970s only to grow sharply during the 1980s; (2) rising financial returns to education and labor market exper...

While the U.S nursing labor market has been the subject of previous research, the wage trends observed in this market remain unexplained. For many years the nursing labor market has been characterized by shortages which have led to an increase in the number of foreign born nurses. The main aim of this paper is two fold: I estimate the impact of high skilled immigration in the U.S nursing labor ...

This paper explores the rationale for unemployment beneÞts as a complement to optimal non-linear income taxation. High-skilled workers and low-skilled workers face different exogenous risks of being unemployed. As long as the low-skilled workers face a higher unemployment risk, we Þnd that there is a case for over-insuring the lowskilled, hence the unemployment beneÞts of the low-skilled should...

South Asian labor market has undergone changes brought in by the forces of liberalization. Liberal free trade has changed the structure of industrial priority from import competing to export industries. This has implied fragmentation and relocation of industries in the value added chains. Production has been stretched across the globe and unskilled labor and skilled labor are being thrown to fo...

Differences in income levels across countries are generally attributed to differences in productivity. In studies of internal migration (e.g. within the U.S.), it is commonly observed that skilled workers move much more than unskilled workers. The paper analyzes the implications of such differential migration, using a model in which efficiency differences are labor-augmenting, and free trade in...

In this paper, we quantify the effects of the Earned Income Tax Credit (EITC) from a macroeconomic perspective. We use an incomplete markets model to analyze jointly the labor supply and saving responses to changes in tax credit generosity and their aggregate and distributional implications. In line with existing literature, our results show that the EITC is an effective policy instrument to ra...

55. Frank Sammartino, "The Impact of Tax Reform on Income Distribution," (Washington, D.C.: NPA, 1996). 56. Council of Economic Advisers, Economic Report of the President (Washington, D.C.: USGPO, 1996). 57. U.S. Department of Labor, Report on the American Workforce (Washington, D.C.: USGPO, 1995). 58. James Heckman, "Assessing Clinton's Program on Job Training, Workfare, and Education in the W...

The large influx of immigrants in recent decades has led to an equally long debate over their effect on the labor market outcomes of native-born workers. Economic theory posits that an increase in the supply of labor, such as from immigration, will reduce the wage employers are willing to pay all workers (native-born and foreign-born) in a given labor market. As a result, some of the workers wh...