LABOUR SKILLS AND HUMAN CAPITAL IN THE EXPLANATION OF TRADE PATTERNS

In the discussion of the qualitative inferences to be drawnfrom the signs of _s and c₃ [OEP 43.2 p. 448], possibilities(ii), (iii) and (iv) and the beginning of the immediately followingparagraph should read:

1. if both _s and c₃ are positive and ß₃₁> ß₃₂
2. if _s is positive and c₃ is negative theneither ß₃₁and ß₃₂ are both positive andß₃₁ > ß₃₂,or they are both negativeand |ß₃₂|>|ß₃₁|,or ß₃₁ ispositive and ß₃₂ is negative.
3. if _sis negative andc₃ is positive then either ß₃₁and ß₃₂ areboth positive and ß₃₂ < ß₃₁,or theyare both negative and |ß₃₁| > |ß₃₂|,or ß₃₁ is negative and ß₃₂ is positive.

Notice that without first confirming that _s = 0 when c³ 0 nothingmuch can be said about the factor content of trade by lookingat c₃ alone; for, in terms of signs of ß₃₁ and ß₃₂,c₃ < 0 precludes only the combination (ß₃₁ <0 & ß₃₂ > 0); and c₃ > 0 precludes onlythe combination (ß₃₁ > 0 & ß₃₂ <0). Similarly...     

Employment,schooling and productivity growth

Summary This paper presents an empirical analysis of labour demand and labour productivity growth in The Netherlands. Assuming an aggregate production function with as factors capital and 3 types of labour, distinguished by educational attainment, cost minimization leads to a set of 3 labour demand relations to be estimated on time series data. Using the estimates and the implied elasticities, aggregate labour productivity growth is decomposed into factor substitution, autonomous factors, labour time shortening, economies of scale, utilization rates and the increased educational level of the working population. The contributions of substitution, utilization rates and education appear to be substantial, notably in the seventies.

List of symbols

Variables a _i Efficiency index of skill leveli - C production - h _i working-time index for skill leveli - g _i steady-state growth rate of skill leveli - K capital stock - L _i employment volume of skill leveli - L _i ^* desired level of labour skill leveli - p output price - p ^* desired output price - s _i ^* long-run static labour shares in the production value - p _k rental price of capital - P index of total factor productivity - P _l index of labour productivity - u _i utilization rate of skill leveli - u _k utilization rate of capital - w _i wage rate for skill leveli - y production volume - y _yij Hicks partial elasticities of complementarity - _i steady-state cost share of skill leveli - _k Bk steady-state cost share of capital - _f lf highest level price index in cost function nesting - _g 4 intermediate level price index in cost function nesting - _h 4 lowest level price index in cost function nesting - _i steady-state relative wage share of skill leveli - _ij Allen partial elasticities of substitution Parameters d _i l adjustment speed of skill leveli - d _p price adjustment speed - M mark-up on marginal costs - scale elasticity of production - _i distribution parameter in cost function,i = 3, g - _i distribution parameter in cost function,i = k, h - _i distribution parameter in cost function,i =1, 2 - _i autonomous labour productivity growth for skill leveli - _i cost share of skill level in base year - _f production cost index in base year - _i hours elasticity in labour efficiency index - group elasticity of substitution betweenL ₃ and (K, (L ₁,L ₂)) - _g Og group elasticity of substitution betweenK and (L ₁,L ₂) - _h 6h group elasticity of substitution betweenL ₁ andL ₂ We would like to thank B. Downey, G.M.M. Gelauff, A. Nieuwenhuis, J.M.M. Ritzen, J.C. Siebrand and an unknown referee for helpful comments on earlier drafts.     

Policy coordination in East Asia and across the Pacific

In this paper, we construct a macro-econometric model that describes the economic activity in the Asia-Pacific area and provide quantitative insights into the recent policy debates on monetary and currency coordination among the East Asian economies. The model includes a wide variety of monetary and currency policy rules that the East Asian economies adopt and allows for one country's policymaking to have substantial effects on foreign countries. We apply the model to three current policy issues: (1) the desirability of currency basket pegs in East Asia, (2) the anticipated effects of China's currency policy reform, and (3) the non-negativity constraint on Japanese nominal interest rates. The simulation analyses show the external economy effects of policy rules quantitatively and suggest the difficulty of monetary and currency policy coordination among the East Asian economies.

---

Farm earnings, educational attainment, and role of public policy: Some evidence from Mexico

Using real household survey data from Mexico, this study evaluates

• 1. 

  (a) the impact of schooling on farm earnings through the “direct” and “allocative” effects of human capital;

• 2. 

  (b) the household demand for children's schooling;

• 3. 

  (c) using macro-level data, the association between children's school-participation and some policy variables.

The overall rate of return to household heads' schooling is estimated at 25%, and for wives, 19%. The allocative effect of schooling of household heads dominates over the direct effect. Mother's schooling and farm size exercise significantly positive effects on household demand for schooling; while in the macro model, policy variables, government expenditure and pupil-teacher ratio appear strong determinants of children's attainment of primary schooling.     

Reviews

M. W. Barley . Houses and history. Frank T. Melton . Sir Robert Clayton and the origins of English deposit banking, 1658-1685. John Rule . The labouring classes in early industrial England, 1750-1850. Clive Trebilcock . Phoenix Assurance and the development of British assurance, Vol. I, 1782-1870. J. A. Cantrell . James Nasmyth and the Bridgewater Foundry: a study of entrepreneurship in the early engineering industry Andrew Porter . Victorian shipping and imperial policy: Donald Currie, the Castle Line and South Africa. Roger J. P. Kain . An atlas and index of the tithe files of mid-nineteenth-century England and Wales. Anne Digby . Madness, morality and medicine: a study of the York Retreat, 1796-1914. Dudley Baines . Migration in a mature economy: emigration and internal migration in England and Wales, 1861-1901. Mark Blaug . Economic history and the history of economics. Leslie Hannah . Inventing retirement: the development of occupational pensions in Britain. Peter Mathias and Stuart Bruchey (Eds.). British economic history. An eighteen-volume series of theses. Alfred W. Crosby . Ecological imperialism: the biological expansion of Europe, 900-1900. Barbara A. Hanawalt (Ed.). Women and work in preindustrial Europe. A. J. Coale and S. C. Watkins (Eds.). The decline of fertility in Europe. Anne Lombard -Jourdan . Aux origines de Paris: la genèse de la rive droite jusqu'en 1223. Catharina Lis . Social change and the labouring poor: Antwerp, 1770-1860. Gérard Delille . Famille et propriété dans la Royaume de Naples, XV^e-XIX^c Siècle. Carl G. Gustavson . The small giant: Sweden enters the industrial era. Karl -Gustav Hildebrand . Expansion, crisis, reconstruction: the Swedish Match Company, 1917-1939 Silvana Malle . The economic organization of war communism, 1918-21. Arcadius Kahan . The plow, the hammer and the knout: an economic history of eighteenth-century Russia. David W. Galenson . Traders, planters and slaves, market behaviour in early English America. Oliver A. Rink . Holland on the Hudson: an economic and social history of Dutch New York. Charles Bergquist . Labor in Latin America: comparative essays on Chile, Argentina, Venezuela, and Colombia. Yen -P'ing Hao . The commercial revolution in nineteenth-century China: the rise of Sino-western mercantile capitalism. Kesaji Kobayashi and Hidemasa Morikawa (Eds.). Development of managerial enterprise. David Coleman and Roger Schofield (Eds.). The state of population theory: forward from Malthus. R. I. Rotberg and T. K. Rabb (Eds.). Population and economy: population and history from the traditional to the modern world. Herman Van Der Wee . Prosperity and upheaval: the world economy, 1945-1980.     

Reviews

Book review in this Article Claude Mossé . Ancient Culture and Society: The Ancient World at Work. P. J. Ucko and G. W. Dimbleby (Eds.). The Domestication and Exploitation of Plants and Animals. N. Rubinstein (Ed.). Florentine Studies. Politics and Society in Renaissance Florence. Raymond de Roover . The Bruges Money Market around 1400. Henri Touchard . Le commerce maritime breton à la fin du Moyen Age. Guillermo Lohmann Villena . Les Espinosa, une famille d'hommes d'affaires en Espagne et aux Indes à l'époque de la colonisation. J. H. Shennan . Government and Society in France, 1461–1661. Marcel Couturier . Recherches sur les structures sociales de Châteaudun F. Jaupart . L'activité commerciale de Bayonne au XVIIIe siècle. Pierre Jeannin . L'Europe du Nord-Ouest et du Nord aux XVIIe et XVIIIe siècles. T. Emmons . The Russian Landed Gentry and the Peasant Emancipation of 1861. Helmuth Stoecke (Ed.). Kamerun unter Deutscher Kolonialherrschaft. Dieter Petzina . Autarkiepolitik im Dritten Reich. Der nationalsozialistische Vierjahresplan. Carl Bridenbaugh . The Beginnings of the American People: Vexed and Troubled Englishmen, 1590–1642. Vincent Ponko , Jr. The Privy Council and the Spirit of Elizabethan Economic Management, 1558–1603. Darrett B. Rutman . Husbandmen of Plymouth: Farms and Villages in the Old Colony, 1620–1692. Brooke Hindle . Technology in Early America. Sam Bass Warner , Jr . The Private City: Philadelphia in Three Periods of its Growth. N. Rosenberg (Ed.). The American System of Manufactures. The Report of the Committee on the Machinery of the United States and the Special Reports of George Wallis and Joseph Whitworth. Harry N. Scheiber . Ohio Canal Era: A Case Study of Government and the Economy, 1820–1861. Grace Rogers Cooper . The Invention of the Sewing Machine. Melvin M. Leiman . Jacob N. Cardozo: Economic Thought in the Antebellum South. Ralph D. Gray . The National Waterway. Stanley Buder . Pullman: An Experiment in Industrial Order and Community Planning, 1880–1930. Philip Taft . Labor Politics American Style: the California State Federation of Labor. M. Melnyk . Long Fluctuations in Real Series of American Economy. Edward L. and Frederick H. Schapsmeier . Henry A. Wallace of Iowa: The Agrarian years, 1910–1940. Karl Schriftgiesser . Business and Public Policy: The Role of the Committee for Economic Development, 1942–1967. C. A. Blyth . American Business Cycles, 1945–50. A. W. Coats and Ross M. Robertson (Eds.). Essays in American Economic History. Acta Historiae Neerlandica. M. A. Arnould . L'impôt direct dans le Tournaisis au début régime espagnol (1523–1571). H. Bauduin and J. Jansen . Aspecten van de Limburgse landbouwgeschiedenis. W. Berghuis . Ontstaan en ontwikkeling van de Nederlandse beleggingsfondsen tot 1914. W. P. Coolhaas . Generale Missiven van Gouverneurs-Generaal en Raden aan Heren XVII der Verenigde Oostindische Compagnie. A. M. de Jong . Geschiedenis van de Nederlandsche Bank (1814–1914). J. A. de Jonge . De industrialisatie in Nederland tussen 1850 en 1914. A. C. J. de Vrankrijker . Belastingen in Nederland, 1848–1893. De strijd om een modernisering van het stelsel. H. Galle . La “Famine du coton”, 1861–1865. Effets de la Guerre de Sécession sur l'industrie cotonnière gantoise P. Harsin and E. Helin . Problèmes de mortalité. Méthodes, sources et bibliographie en démographie historique. J. Leaonard -Etienne . Recherches sur l'investissement et la rentabilité dans l'industrie liégeoise. A. Louant . Le journal d'un bourgeois de Mons, 1505–1536. B. Lyon and A. Verhulst . Medieval Finance. A Comparison of Financial Institutions in Northwestern Europe. A. Moureaux-van neck . Assistance publique, 1856–1956. J. G. Nanninga . Bronnen tot de Geschiedenis van den Levantschen handel. Recherches sur l'histoire des finances publiques en Belgique. J. Ruwet , E. Helin , F. Ladrier , and L. van Buyten . Le marché des céréales à Ruremonde, Luxembourg, Namur et Diest aux XVIIe et XVIIIe siècles. G. Spitaels . Le mouvement syndical en Belgique. M.-R. Thielemans . Bourgogne et Angleterre. Relations politiques et economiques entre les Pays-Bas bourguignons et l'Angleterre, 1435–1467. F. van Bocxlaer . De evolutie van de economische pers in België. J. M. G. van der Poel . Honderd jaar landbouwmechanisatie in Nederland. G. Vandewalle . De conjuncturele evolutie in Kongo en Ruanda-Urundi van 1920 tot 1939 en van 1949 tot 1958. M. van Durme . Les archives générales de Simancas et l'histoire de la Belgique, IX-XIXe sièdes. M. van Durme . Les archives générales de Simancas et l'histoire de la Belgique, IX-XIXe siècles. J. A. van Houtte . Bruges. Essai d'histoire urbaine. D. van Rijssel . De Gentse huishuren tussen 1500 et 1795. Bijdrage tot de kennis van de konjunktuur van de Stad. Pro Civitate. F. van Tyghem . Op en om de Middeleeuwse bouwwerf. De gereedschappen en toestellen gebruikt bij het bouwen van de Vroege Middeleeuwen tot omstreeks 1600. H. van Werveke . Miscellanea Mediaevalia. Verspreide opstellen over economische en sociale Geschiedenis van de Middeleeuwen. A. Verhulst . Het landschap in Vlaanderen in historisch perspectief. Ch . Verlinden , E. Scholliers , H. Desmedt -Coppejans , J. Craeybeckx , and G. Impens . Dokumenten voor de geschiedenis van prijzen en lonen in Vlaanderen en Brabant. H. Wouters . Documenten betreffende de geschiedenis der arbeidersbeweging (1853–1865). Bedrijf en Samenleving. Economisch-historische studies over Nederland in de negentiende en twintigste eeuw aangeboden aan Prof. Dr I. J. Brugmans bij zijn aftreden als hoogleraar aan de Universiteit van Amsterdam. L'impôt dans le cadre de la ville et de l'Etat. De belasting in het raam van stad en staat.     

RATES OF RETURN TO EDUCATION IN BOTSWANA: RESULTS FROM THE 2002/2003 HOUSEHOLD INCOME AND EXPENDITURE SURVEY DATA SET

Using the most recent Household Income and Expenditure Survey data (2002/2003), this paper presents current rates of return to education for Botswana. The results show that the rates of return have in general declined by one percentage point on average between the periods as shown in Table 2 . If we, however, look at the averages for the different school cycles, the fall in the average rates is quite significant at about six percentage points between the periods. The biggest fall is for secondary education, especially upper secondary education, which fell by 28 percentage points between the periods. The rates of return to tertiary education, however, rose by more than 50 percentage points. Ignoring upper secondary, the pattern of rates of return has remained similar to the results of the study based on the 1993/1994 data. Rates are higher for tertiary education and lower for secondary than for primary education. This results are still consistent with rates of return generally rising with level of education. At policy level, the results continue to support sharing of costs between Government and beneficiaries or their parents especially at tertiary education level. Second, the results indicate the need for the country to continue to vigorously pursue job creation and reorient the education system from emphasis on white collar jobs.

Table 2. Mincerian earnings function: overall Ψ
Dependent variable (ln monthly earnings)

On Indexed Bonds and Aggregate Demand Elasticity

Bonds indexed to the price level or inflation have become popular and more common in the industrialized world. This paper examines the impact of indexed bonds on the price level elasticity of aggregate demand. With a model of aggregate demand based on the standard IS-LM framework and expanded to differentiate between bonds which are indexed to the price level and bonds which are not so indexed, we find that the existence of indexed bonds decreases the elasticity of aggregate demand with respect to the general price level.

Fiscal policy in an optimizing model with finite lives and endogenous labour supply

Summary In this paper the impact of balanced budget, money-financed and bond-financed fiscal policy is analyzed, in the short run as well as in the long run. The analysis is based on an optimizing model of a closed economy that displays perfect foresight of agents and sticky wages and prices. Consumers have finite planning horizons modeled according to the Blanchard-Yaari framework. Labour supply is endogenized by including leisure in the utility function. Labour scarcity is also allowed for. The results are illustrated by numerical simulation experiments.List of symbols A financial wealth - B stock of bonds - c actual consumption - c _d demand for consumption goods - c _s supply of consumption goods - D dividend - E equity - F government budget deficit - g government expenditures - H human wealth - i actual investment (excluding installation costs) - i _d demand for investment goods (excluding installation costs) - j actual investment - j _d demand for investment goods - j _s supply of investment goods - k capital stock - l actual employment - l _d notional demand for labour - l _k Keynesian demand for labour - l _s supply of labour - M money stock - P _l nominal wage - P _y price - q Tobin'sq - R nominal interest rate - T lump-sum tax - u instantaneous utility - U lifetime utility - W total wealth - y actual production - y _d demand for goods - y _l labour constrained supply of goods - y _s notional supply of goods     

Reviews

Books reviewed in this article: GREAT BRITAIN C. Phythian -Adams . Desolation of a City: Coventry and the Urban Crisis of the Late Middle Ages. Felicity Heal . Of Prelates and Princes. A Study of the Economic and Social Position of the Tudor Episcopate. David Cressy . Literacy and the Social Order. Reading and Writing in Tudor and Stuart England. Frances J. Shaw . The Northern and Western Islands of Scotland: Their Economy and Society in the Seventeenth Century. Arthur H. John and Glanmor Williams (Eds.). Glamorgan County History. Vol. V. Industrial Glamorgan from 1700 to 1970. David Cannadine . Lords and Landlords: The Aristocracy and the Towns, 1774–1967. Susanna Wade Martins . A Great Estate at Work: The Holkham Estate and its Inhabitants in the Nineteenth Century. George J. Barnsby . Social Conditions in the Black Country, 1800–1900. Norman Mc Cord . Strikes. C. G. Powell . An Economic History of the British Building Industry, 1815–1979. T. R. Gourvish . Railways and the British Economy, 1830–1914. F. C. Mather (Ed.). Chartism and Society. An Anthology of Documents. P. L. Cottrell . Industrial Finance, 1830–1914. The Finance and Organization of English Manufacturing Industry. Ian Levitt and Christopher Smout . The State of the Scottish Working Class in 1843: A Statistical and Spatial Enquiry Based on the Data from the Poor Law Commission Report of 1844. Angela V. John . By the Sweat of their Brow: Women Workers at Victorian Coal Mines. Charles More . Skill and the English Working Class, 1870–1914. A. E. Dingle . The Campaign for Prohibition in Victorian England: The United Kingdom Alliance, 1872–1895. G. R. Hawke . Economics for Historians. Raphael Samuel (Ed.). People's History and Socialist Theory. Bari ?A Kreki ?. Dubrovnik, Italy and the Balkans in the late Middle Ages. Myron P. Gutmann . War and Rural Life in the Early Modern Low Countries Juan Sanz Sampelayo . Granada en el Siglo XVIII. Pierre Caspard . La Fabrique-Neuve de Cortaillod: entreprise et profit pendant la Revolution industrielle, 1752–1854. J. M. Diefendorf . Businessmen and Politics in the Rhineland, 1789–1834. Christof Dipper . Die Bauernbefreiung in Deutschland, 1790–1850. David Alexander and Rosemary Ommer (Eds.). Volumes Not Values: Canadian Sailing Ships and World Trade. Marco Palacios . Coffee in Colombia, 1850–1970: An Economic, Social and Political History. Sherman Cochran . Big Business in China: Sino-Foreign Rivalry in the Cigarette Industry, 1890–1930. Michael Stephen Smith . Tariff Reform in France, 1860–1900. The Politics of Economic Interest. A. D. Chandler , Jr . and H. Daems (Eds.). Managerial Hierarchies: Comparative Perspectives on the Rise of the Modern Industrial Enterprise. Carl -Ludwig Holtfrerich . Die deutsche Inflation, 1914–1923: Ursachen und Folgen in internationaler Perspektive. Rajat K. Ray . Industrialization in India: Growth and Conflict in the Private Corporate Sector, 1914–47.     

The takeover and selection effects of foreign-owned establishments: an analysis using linked employer–employee data

We provide the first estimates of the effect of foreign ownership on wages in Germany, controlling for the observed and unobserved characteristics of workers and plants. We also test whether the wage gains from joining a foreign-owned firm are subsequently lost when leaving that firm, and we examine whether wage gains vary across the sample. We find large selection effects in terms of worker and plant components of wages. Once the selection effect is taken into account, the takeover effect is small and in some cases insignificantly different from zero.

Asset Prices as Indicators of Euro Area Monetary Policy: An Empirical Assessment of Their Role in a Taylor Rule

This paper estimates forward-looking and forecast-based Taylor rules for France, Germany, Italy, and the euro area. Performing extensive tests for over-identifying restrictions and instrument relevance, we find that asset prices can be highly relevant as instruments in policy rules. While asset prices improve Taylor rule estimates, different assets prove most relevant across countries and this result could be seen as complicating the tasks of the European Central Bank. Encompassing tests show that forecast-based outperform forward-looking Taylor rules. A policy implication is that central banks ought to release their own forecasts and the basis upon which they are generated.

Een eenvoudig macro-economisch model voor Nederland

Summary On the basis of the neo-classical theory of the cycle, developed by D. B. J. Schouten, an effort has been made to introduce some of its elements in an empirical model for the Dutch economy. As far as possible this theory has been used to explain production, investment, employment and wages. The sampling period covered 1953–1965; estimates of the parameters were ordinary least squares estimates. A simulation of the Dutch economy for the period 1953–1968, with only the exogenous variables predetermined, gave satisfying results. System stability tests showed dampened oscillations, each cycle taking about 8 1/2 years.D Symbolenlijst c consumptieve bestedingen van gezinshuishoudingen (p _c ) - ç _a ,c _a bruto produktiecapaciteit van bedrijven (p _ij ) - e uitvoer goederen en diensten (p _e ) - h arbeidsproduktiviteit bij bedrijven (p _ij ) - ,i bruto investeringen van bedrijven, excl. woningbouw en voorraadvorming (p _i ) - l werkgelegenheid bij bedrijven, incl. zelfstandigen - m invoer goederen en diensten (p _m ) - p _i loonsom per man bij bedrijven (P _c ) - q over- of ondercapaciteit bij bedrijven als percentage van de bruto produktiecapaciteit in periodet-1 - v bruto afzet van goederen en diensten, excl. voorraadvorming, primaire inkomens van en naar het buitenland en lonen en salarissen betaald door de overheid (p _v ) - w werkloosheid als percentage van de afhankelijke beroepsbevolking, incl. zelfstandigen - ij bruto produktie van bedrijven (p _ij ) - z bruto beschikbaar overig inkomen (p _i ) Exogene variabelen h _w herwogen wereldhandel - x materiële overheidsuitgaven en woningbouw (p _x )     

Reviews

Review in this Article The Collected Writings of John Maynard Keynes. H. P. R. Finberg (Ed.). The Agrarian History of England and Wales, A.D. 43–1042 M. M. Postan, The Medieval Economy and Society. Michael Prestwich . War, Politics and Finance under Edward I. E. B. De Windt. Land and People in Holywell-cum-Needingworth. I. S. W. Blanchard (Ed.). The Duchy of Lancaster's Estates in Derbyshire 1485–1540. Henryk Zins. England and the Baltic in the Elizabethan Era. J. D. Chambers. Population, Economy, and Society in Pre-Industrial England E. Halévy (Trs. and Ed. Bernard Semmel). The Birth of Methodism in England. G. E. Fussell. Jethro Tull: His Influence on Mechanized Agriculture. David Hey . The Rural Metalworkers of the Sheffield Region. Judith Blow Williams. British Commercial Policy and Trade Expansion 1750–1850. Norman Mc Cord. Free Trade: Theory and Practice from Adam Smith to Keynes. Alice Mary Hadfield. The Chartist Land Company. R. G. Garnett. Co-operation and the Owenite Socialist Communities in Britain, 1825–45. Raymond Challinor. The Lancashire and Cheshire Miners. Arthur J. Taylor. Laissez-faire and State Intervention in Nineteenth-century Britain. T. R. Gourvish. Mark Huish and the London & North Western Railway. A Study of Management. Bentley B. Gilbert. British Social Policy, 1914–1939. R. G. Albion. Naval and Maritime History: An Annotated Bibliography. A.J. YOUNGSON (Ed.). Economic Development in the Long Run. G. E. Fussell. The Classical Tradition in West European Farming. David Maland. Culture and Society in Seventeenth-Century France. Alan Mayhew. Rural Settlement and Farming in Germany G. J. Abbott. The Pastoral Age: A Re-examination. Charles Issawi (Ed.). The Economic History of Iran 1800–1914. James T. Lemon. The Best Poor Man's Country: A Geographical Study of Early Southeastern Pennsylvania. Raymond A. Mohl. Poverty in New York 178–1825. Bray Hammond. Sovereignty and An Empty Purse: Banks and Politics in the Civil War. Howard B. Schonberger . Transportation to the Seaboard: The “Communication Revolution” and American Foreign Policy, 1860–1900. Lee Soltow. Patterns of Wealthholding in Wisconsin Since 1850. Charles Gilbert. American Financing of World War One. Robert Sobel. The Great Bull Market: Wall Street in the 1920S. Norton Essays in American History, Harold M. Hyman, general editor. Raymond Wolters . Negroes and the Great Depression: The Problem of Economic Recovery. George E. Hopkins. The Airline Pilots. A Study in Elite Unionization.     

Can the HOSS framework help shed light on the simultaneous growth of inequality and informalization in developing countries?

Using simple, modified versions of the factor proportions framework, and focusing on structural features within developing economies, this paper attempts to reconcile puzzling developments observed in many post-reform, post-liberalization countries whereby increasing income inequality has emerged side-by-side with informalization of the economy. Measures undertaken to enhance public sector efficiency and attract investment in an import-intensive export sector may increase rental–wage and skilled–unskilled wage gaps, contra the predictions of the simple Heckscher–Ohlin–Stolper–Samuelson (HOSS) framework regarding skill- and capital-scarce countries. The common thread generating our interesting results is the presence of sectors that are even more labor-intensive than those producing traded goods.