Heterogeneity, Wage Inequality, Unemployment, and Economic Growth

Abstract:: This project would provide the first internally consistent theory of wage inequality, unemployment and economic growth -- and the roles that government policy variables play in determining them. It would use and extend frontier developments in theory, and identify the settings of policy variables (unemployment insurance, tax structures, education policies) that maximize social welfare, given that governments must satisfy their budget constraints. It will also uncover the relationship between the innate abilities of workers and their education choices -- and the consequences for macroeconomies and public policy.
Grant type:: ARC Discovery Projects
Funded by:: Australian Research Council

The University of Queensland