In this paper we consider a new channel through which a minimum wage legislation can affect the economy. We look at an overlapping generations economy in which skills are endogenously determined. Skills, or human capital, is determined by the average skill level of the previous generation and by...

In this paper we look at the long run growth implications of labour market distortions. The analysis is cast in a model where growth is generated by two alternative sources of enhancing labour productivity. The first is that workers before entering the job market may undertake schooling....

European labour markets are in a state of flux due to the changing market situation induced by international integration. This process affects wage formation through more fierce product market competition and increased mobility of jobs. This development is by some observers taken to enforce...

This paper analyses how job security policies, which in practice result in higher firing costs, affect long-run employment and investment in a two country model with free trade in goods and capital. The effects turn out to depend crucially on the preferences of trade unions, and in particular on...

Ungewisse Wechselkurspolitiken und Zinsfestsetzung Wir untersuchen, wie ungewisse Wechselkurspolitiken die Zinsdifferenzen zwischen Ländern beeinflussen, die einem gelenkten Wechselkurssystem angehören. Es wird gezeigt, daß der Zinssatz in einer kleinen offenen Volkswirtschaft gemessen an dem...