type="main" xml:id="twec12184-abs-0001" <title type="main">Abstract</title> <p>Contrary to the predictions of the 2 × 2 × 2 Heckscher–Ohlin model, empirical evidence shows that the skill premium increased in some developing countries and decreased in others after trade liberalisation. This paper attempts to reconcile...</p>

This paper attempts to assess the impact of skill loss on the persistence of cyclical unemployment. The observations from the Current Population Survey and the Bureau of Labor Statistics suggest a countercyclical total unemployment rate that exhibits high persistence. A framework that features...

This paper attempts to determine the factors generating the persistence of unemployment over the business cycle. The observations show that the total unemployment rate is highly persistent, and that the persistence of the unemployment rate of unskilled workers is higher than that of skilled...

This paper studies the implications of a monetary policy shock on the skill premium and the unemployment persistence. A VAR demonstrates that a contractionary policy induces a lagged decline in the skill premium and a larger and more persistent increase in the unemployment ratio of the unskilled...

Contrary to the predictions of the 2 × 2 × 2 Heckscher–Ohlin model, empirical evidence shows that trade liberalization causes the skill premium to increase in some developing countries and to decrease in others. This paper develops a North–South model in which complex and simple goods are...

Contrary to the predictions of the 2×2×2 Heckscher-Ohlin model, empirical evidence shows that the skill premium increased in some developing countries and decreased in others after trade liberalization. Khalifa (2014) attempts to reconcile the empirical evidence with the theoretical...

This article attempts to determine the factors behind the cyclical behavior of the skill premium. Using the Current Population Survey Outgoing Rotation Group, the premium is found uncorrelated with contemporaneous output and lags the business cycle. To account for this observation, the article...

This paper presents a complete characterization of the optimal policy in a two sector undiscounted growth model. The model is an extension of the Leontief two sector model, which analyzes the optimal allocation of capital and labor to a consumption good sector and an investment good sector. The...

Using Hansen's (1999) threshold estimation technique and Panel Study of Income Dynamics (PSID) data set for the waves of 2001, 2003 and 2005, we estimate the effects of the fluctuations in financial wealth on the consumption behaviour of households for different endogenously determined income...

Galor and Moav (2004) argue that in the early stages of development, physical capital accumulation is the primary source of economic growth. Thus, inequality enhances growth by channeling resources towards individuals whose marginal propensity to save is higher. In later stages of development,...