Since the mid-1970s wage inequality and skills differentials have increased sharply in OECD countries, and the following have been singled out by economists as possible major contributors: (a)economic globalisation processes; (b)skill-biased technological change; and (c) public policy or...

Globalisation has become extremely intense since the earlier seventies. Given that the world economy is getting dose to a single market, a more efficient outcome via globalisation can be expected. However, globalisation may also have negative effects. We illustrate our findings through a simple...

Income inequality has increased sharply in higher income countries. Theories attributing this to bifurcation of labor markets are examined. Some theorists attribute this bifurcation primarily to technical change with influence from globalization. Others take an opposite viewpoint. A contrasting...

We investigate the link between "underemployment at all wages" and income feedback effects due to firms' activities in an economy with imperfect competition in the product markets. The size of income feedback effects negatively depends on the number of product markets. We strengthen a previous...

It is commonly acknowledged that a larger number of trade unions is associated with a higher level of employment. We demonstrate that this belief can be wrong, i.e. that the entry of trade unions can increase the number of unemployed workers. This result is stated in a multi-sector economy in...