Theoretical discussion on compensating mechanisms involving the Pareto criterion that address inequality rather than absolute welfare is non-existent in trade literature. In a simple HOS model we consider tax-transfer policies that keep the pre-trade degree of inequality unchanged between...

Theoretical discussion on compensating mechanisms involving the Pareto criterion that address inequality rather than absolute welfare is non-existent in trade literature. In a simple HOS model we consider tax-transfer policies that keep the pre-trade degree of inequality unchanged between...

The distribution of income has been shown to be approximately Pareto and there are different mechanisms proposed in the literature that can generate such distribution. This paper shows that scarcity of skills and a neoclassical production function in labor can generate an exact Pareto...

By introducing heterogeneity between high-skilled mobile and low-skill immobile workers in a model with land rent and commuting costs we develop a new model in the field of the new economic geography. This model, which can reveal a dispersion-agglomeration-dispersion configuration when trade...

This paper investigates the extent to which the returns to gaining a PhD degree depend upon the region of birth, the region where the degree was earned, and the place of work. Eastern Germany serves as an interesting showcase in light of the ongoing debate surrounding the underrepresentation of...

Current studies addressing the rise in inequality confine themselves to country-level developments. This paper delineates trends in earnings inequality and employment at the sectoral level for eight LIS countries between 1985-2005. Earnings inequality mainly manifests itself within rather than...

We study wealth disparities in the formation of anthropometrics, cognitive skills and socio-emotional skills. We use a sample of preschool and early school children in Chile. We extend the previous literature by using longitudinal data, which allow us to study the dynamics of child growth and...