The gender differentials in schooling and labor market outcomes have narrowed significantly in the last few decades. At the same time, it is well documented that idiosyncratic income risk has risen over the same period. We define idiosyncratic risk as the variance of the unobserved wage...

by conditional first moments.

We study the cross-country relationship between the relative price of tradables and income per capita. The theory developed is based on financial frictions and differences in the efficient scale of production across sectors. Countries with more severe financial frictions are more dependent on...