This paper analyses elite incomes around the world, and how international comparisons of elite incomes vary depending on the exchange rate and income concept used. It is well known that between-country income inequality is higher using market exchange rates than purchasing power parity (PPP)...

We incorporate sectoral job separation rates in a small open economy model to examine the Balassa-Samuelson (B-S) effect. Labour is mobile, but unemployment occurs due to search frictions. Moreover, unequal separation rates give rise to compensating wage differentials. We use Japanese data to...