The impact of financial crisis has not been uniform across the globe. Apart from the epicentre of the crisis, those with higher dependency on external markets both for trade and finance had more immediate and larger impact of the global contagion. In contrast, the small businesses with lower...

The paper shows that in a two-good economy with a basic and a luxury good sector inequality is indeed a hindrance to provide sufficient incentive for entrepreneurship to low-wealth economic agents. In contrast to the literature it uses both demand and supply-side explanations for the analysis....

This paper presents a two-step job ladder model where a skilled individual faces uncertainty in getting a skilled job and an inferior (unskilled) job down the job ladder is the alternative employment opportunity. When the probability of getting the skilled job is low enough, the model suggests...

The recent phenomenon of widening skilled-unskilled wage gap in both North and South has been either explained by a technological change or by increasing trade or globalization. The paper provides a new explanation and emphasizes that it is neither technology nor trade alone but both that have...