This paper examines an economic union where oligopolistic firms produce by skilled and unskilled labor and do R&D by skilled labor. The planner of the union accepts new members to the union, deregulates the product market through anti-trust policy and regulates the labor market through a minimum wage for unskilled labor. Firms and workers lobby the planner for prospective policy. It is shown th...

This paper provides data on the output and factor payments of new goods for every 4-digit industry in the U.S. manufacturing sector in the late 1970s and 1980s. For the entire manufacturing sector, the new goods’ average skilled-labor intensity exceeds the old goods’ by over 40%, and new goods can account for about 30% of the increase in the relative demand for skilled labor. Since new goods pr...

Union membership displayed a n-shaped pattern over the 20th century, while the distribution of income sketched a u. A model of unions is developed to analyze these phenomena. There is a distribution of firms in the economy. Firms hire capital, plus skilled and unskilled labor. Unionization is a costly process. A union decides how many firms to organize and its members wage rate. Simulation of t...

Human Capital, Economic Growth, and Inequality in China China’s rapid growth was fueled by substantial physical capital investments applied to a large stock of medium skilled labor acquired before economic reforms began. As development proceeded, the demand for high skilled labor has grown, and, in the past decade, China has made substantial investments in producing it. The egalitarian access t...

Union membership displayed a ∩-shaped pattern over the 20th century, while the distribution of income sketched a U. A model of unions is developed to analyze these phenomena. There is a distribution of firms in the economy. Firms hire capital, plus skilled and unskilled labor. Unionization is a costly process. A union decides how many firms to organize and its members’ wage rate. Simulation of ...

This paper presents a cross country empirical investigation of impacts of skilled labor emigration on sending country’s institutional development. Based on Albert Hirschman’s “Exit and Voice” model, we analyze different channels through which emigration can affect institutions; using Djankov et al.’s “Institutional Possibility Frontier” framework, we assess emigration’s heterogeneous effects on...

Borjas, Problem 4­4 This question asks how the wages of (presumably high‐skilled) natives should change when there is a change in the quantity of available low‐skilled (immigrant) labor assuming that natives and immigrants are complements. Whenever two factors of production are complementary, an increase in one increases the returns to another. So in this case, the llegal alien hiring penaltie...

While global economies are in a tremendous need for talented workers that could fill vacancies Science, Technology, Engineering, and Mathematics (STEM) fields, available evidence shows highly skilled migrants with background these fields not protected from brain waste deskilling. In this paper, we add to the previous literature on employability of migrant women specific—and under-investigated—p...

Abstract We measure U.S. listed companies’ skilled labor risk—that is, the potential failure in attracting and retaining labor, by intensity of discussions on this issue 10-K filings. show that effectively captures firm risk due to mobility labor. find an increase from 25th 75th percentile would wage 22% (or $15,593) also lead higher equity-based incentive pay. The interacts with other corporat...

An important task in the growth and development literature has been to characterize the nature of cross-country labor efficiency differences. In this paper, I develop a new method to estimate the relative efficiency of skilled and unskilled labor across countries using disaggregated industry and trade data. The method assigns a country a high efficiency of skilled labor if it has low relative u...