We investigate the theoretical relationship between wage concentration and international market integration. Access to imported varieties lowers the cost of intermediate inputs (“machines”) used to carry out production tasks, causing workers with different comparative abilities to be sorted...

The purpose of this paper is to investigate to what extent modifications of tax systems between 1985 and 1992 within major parts of the European Union contributed to changes in the labour market. The principal countries under investigation are Germany, Italy, France and the United Kingdom, and...

This paper shows that increases in direct tax progression tend to reduce wages and increase welfare and employment, even in a model allowing for labour supply effects. The employment effect is reversed when benefit levels are low, however. The model shows the different impacts on full- and...

This paper shows that increases in direct tax progression tend to reduce wages and increase welfare and employment, even in a model allowing for labour supply effects. The employment effect is reversed when benefit levels are low, however. The model shows the different impacts on full and...

This note derives a model of the wage curve, closely following Phelps (1994) and Campbell and Orszag (1998). Phelps discusses a variety of theoretical bases for a wae curve, the two major competing types being bargaining models and efficiency wage models, though Phelps prefers the term...

This paper investigates the deeper integration of the new EU accession states into the Single Market. Building on the assumption that observed trade patterns can be taken to reveal trading costs between members and non-members of a bloc, I develop a model-consistent Dixit-Stiglitz general...