We study the impact of country size on wages in a two-country trade model with monopolistic competition and non-homothetic preferences. Since there is renewed interest in nonhomothetic preferences and variable markups, we revisit standard results on wages obtained using homothetic (CES) preferences. The standard results are that, under free trade, wages are equal and that, with iceberg costs, t...

We analyze the internal spatial wage and employment structures of the Czech Republic, Hungary, Poland, Slovenia and Slovakia, using regional data for 1996-2000. A new economic geography model predicts wage gradients and specialization patterns that are smoothly related to regions’ relative market access. As an alternative, we formulate a “Comecon hypothesis”, according to which wages and sector...

This paper examines the market for teachers in the UK from 1960 to the mid 1990s using graduate cohort data from 5 separate cohorts. The use of this data allows us to simulate the effect of possible teacher pay rises over time. We find that relative wages in teaching compared to alternative professions have a significant impact on the likelihood of graduates choosing to teach, although the impa...

"The role of location-specific amenities in human migration decisions, and subsequently regional development, is explored. A framework is developed which motivates a new assessment of existing alternative models of regional development, indicating the need for additional modeling efforts which focus upon amenities as critical elements in such analyses. The approach hinges upon the notion that...

The Welfare Effects of Globalization with Labor Market Regulation I examine how globalization affects wages and welfare in a general equilibrium model of international trade with partly oligopolistic markets. Globalization is modeled as reducing trade costs or opening up shielded sectors to trade. There is a national or international common agency that determines minimum wages for the oligopoli...

This paper examines the thesis that monopsony power is an important determinant of wages in nursing labor markets. Using data from the 1985-93 Current Population Surveys, measures of relative nurse/non-nurse wage rates for 252 labor markets are constructed. Contrary to predictions from the monopsony model, no positive relationship exists between relative nursing wages and hospital density or ma...

We study employment, employee effort, wages and profit sharing when firms face stochastic revenue shocks and when base wages and profit shares are determined through collective bargaining. The negotiated profit share depends positively on the relative bargaining power of the trade union and has effort-enhancing and wage-moderating effects. We show that higher profit sharing reduces equilibrium ...

While migraine headache can be physically debilitating, no study has attempted to estimate its effects on labor market outcomes. Using data drawn from the National Longitudinal Study of Adolescent Health, we estimate the effect of being diagnosed with migraine headache on labor force participation, hours worked, and wages. Ordinary least squares (OLS) estimates suggest that migraines are associ...

Winners and Losers among Skilled Migrants: The Case of Post-Accession Polish Migrants to the UK We test if migration leads to increased wages. We take the example of Polish migrants to the United Kingdom and focus on the mobility of well educated Poles. We offer insights into absolute and relative change in wages of the migrants, utilizing the data from the UK and Polish labor force surveys. We...