Wage inequality is a highly debated topic in policy and academic circles. Policy makers typically consider that a policy promoting the equalization of education levels among the individuals of a society – pushing everybody towards tertiary education – is a good strategy to fight wage...

This note argues that the solutions to the euro-area crisis proposed by the EU governing institutions in cooperation with the IMF, based on further austerity and wage cuts, will worsen the crisis. They are unlikely to reduce both sovereign and external debt ratios of countries experiencing these...