In this paper we study the relationship between unions and growth in a two-sector overlapping generations model with altruism and human capital. This relationship depends on the interaction between the technology in the sector that produces human capital, the degree of unionization of the...

In this paper we highlight the importance of the operational costs in explaining economic growth and analyze how the industrial structure affects the growth rate of the economy. If there is monopolistic competition only in an intermediate goods sector, then production growth coincides with...

In this paper we analyze how the composition of labor taxation affects unemployment in a unionized economy with capital accumulation and an unemployment benefit system. We show that if the unemployment benefit system is gross Bismarckian then the unemployment rate is reduced if wage taxes are...