We use a two-country version of the quality ladders endogenous growth model and show that free international migration raises world growth if it is driven by imbalances in labour supplies. International migration may, however, lower growth if it is induced by policy differences across,...

The authors show how an extended theory of fair wages can be incorporated in the two-by-two Heckscher-Ohlin model. An important feature of the model is the existence of involuntary unemployment. Several results stand out. First, there is no longer a simple relation between measures of factor...

A cash limit is a fixed amount of money available for pay prior to the wage negotiations in the public sector. This paper examines the macroeconomic implications of cash limits in a unionized economy with decentralized wage bargaining in both private and public sectors. The author focuses in...