Based on the aggregation of individual willingness-to-pay for a statistical life, we calibrate an inter-temporal optimisation model to determine the aggregate welfare loss from HIV/AIDS in 25 Eastern European countries. Assuming a discount rate of...

By allowing firms to invest in their workers' human capital, this paper extends the traditional analysis of firing costs with respect to two points, both of them positive in terms of welfare. On the one hand, firing restrictions reduce turnover,...

We study North–South capital transfer and the diffusion of embodied technologies within a framework of intertemporal global welfare maximization. We show saddle path stability and characterize the steady state. We then examine the transition path by...

This paper explores the implications of the ongoing reorganization of firms for inequality in the labour market. We show how recent technological advances in physical and human capital can lead to the breakdown of occupational barriers, creating...

Although wage rigidity is among the most prominent subjects in modern economics, its effects on wage compression and firm training have thus far not been considered. This paper is trying to bridge this gap by using a simple two period model which...

We address the question of whether foreign aid helps attract foreign direct investment (FDI). This could be achieved if well targeted aid removed critical impediments to higher FDI inflows. In particular, we test the hypothesis that aid for education...

This paper substantiates the debate following Richard Florida’s suggestion to measure regional human capital by creative occupations rather than education. Consistent with Florida’s notion of creativity, it suggests a microfoundation that relates...

The paper concentrates on the question whether the low level of productivity in East Germany can be explained by deficits in the stock of human capital. It is shown that figures on “formal” qualifications yield a too optimistic view on human capital...

This paper analyzes the effect of downwards wage rigidity on wage setting, wage compression and firm training. It is shown that downwards wage rigidity in future periods induces a wage penalty and increases wage compression in the present period....

For analyzing the impact of climate change and of international climate policies on the international division of labor and on regional welfare the use of a disaggregated multi-sectoral, multi-regional dynamic computable general equilibrium model is...