Many countries in the developing world, those undergoing transition from planned to market systems and even those in the industrialised west, experience periods in which a substantial proportion of the workforce suffer wage arrears. We examine the implications for estimates of wage relativities...

Transition economies have an initial condition of high human capital relative to GDP per capita. But they will not necessarily realize their latent high growth potential. In the model, at a good equilibrium a large number of children of well-educated parents take advantage of their family...