This Paper studies the inter-temporal problem of a monopolistic firm that engages in productivity-enhancing innovations to reduce its labour costs. If the level of wages is sufficiently low, the firm's rate of productivity growth approaches the rate of wage growth and eventually the firm reaches...

Our model studies the evolution of productivity growth in a competitive industry. The exogenous wage rate determines the firms' engagement in labour productivity enhancing process innovation. There is a unique steady state of the industry dynamics, which is globally stable. In the steady state,...

The MRC National Survey of Health and Development provides data on the hourly pay of males and females at age 26 in 1972 and in 1977. These have been subjected to regression analysis to see how far the gap between men's and women's pay is statistically explicable by (a) a "human capital" model...

In this paper I investigate the relationships between wage adjustment, competitiveness, macroeconomic policy and aggregate fluctuations in a small open economy. Based on a model of an economy producing both traded and non-traded goods, and assuming that the traded goods sector is competitive...

Examining detailed data on Swedish MNCs during the period 1986-1994, this paper shows that there are signs of very notable structural changes in the home country operations of these corporations. It also shows that the character of these changes varies according to economic conditions in the...