We show that the impact of globalization on growth and wages crucially depends on the labor market structures of the countries involved. We contrast bargaining and perfect competition. Under perfect capital markets, convergence of capital and income per capita always occurs despite di®erent labor market structures. However, di®erent labor market structures prevent convergence of the income shar...

The role of government expenditure is analyzed in the context of growing economy with endogenous labor supply and with investment adjustment costs. Assuming the dynasty model of representative consumer’s utility maximization i.e., the present value of over time felicity function maximization under the law of motion capital where felicity function depends consumption, leisure and government expe...

The net effects of switching from consumption taxation to inflation taxation on resource allocation and welfare crucially depend on production externalities. With elastic labor supply, raising inflation taxation decreases leisure, but increases the levels of real consumption, capital, and output. Moreover, this tax switch has two opposing effects on the level of real money balances: A positive ...

This paper analyzes the impact of IRCA 1986, a U.S. amnesty, on immigrants’ human capital development and labor market outcomes. Because of IRCA, the 19751981 arrivals were all legalized by 1990. However, many of the 1982-1986 arrivals remained illegal. Using the California Latino immigrants in Census 1990, I find that the 1975-81 arrivals on average outperform the 1982-86 arrivals in men’s wag...

The paper investigates effects of host-country orientation and cultural difference of migrants on their socio-economic integration in Germany, using SOEP data for the years 1988-2006. We analyze unemployment and employment durations of male and female migrants, as well as transitions from domestic work to employment for female migrants from Turkey, former Yugoslavia, Greece, Spain and Italy. Gi...

this study is performed in order to study the effect of technical- vocational training on trainee productivity in industrial sector of khorasan and preferring suitable solutions in this field. so labor productivity model was estimated for khorasan industry in period 1985 to 2004. in this model, effects of different variables were investigated on productivity of labor, variables such as: relatio...

In this paper, I argue that the two theoretical prerequisites of balanced growth purely labor augmenting technical progress and a unitary capital-labor elasticity are inconsistent with long-run evidence from a simple decomposition of the post-war U.S. economy into heterogeneous industries. My decomposition is motivated by empirical evidence that the degree of substitution between capital and la...

Using panel data, this paper tests whether foreign, public, and private capital have a positive and significant effect on aggregate output and labor productivity for Mexico during the 1960-2001 period. The richer information set made possible by the sectorial data enables this study to utilize the methodologically sound Agroup-mean@ Fully Modified Ordinary Least Squares (FMOLS) procedure develo...