wage stagnation rising inequality and the financial crisis of 2008 the most widely embraced explanations of the financial crisis of 2008 have centered upon inadequate regulation stemming from laissez faire ideology combined with low interest rates although these widely acknowledged causal factors are true beneath them lie deeper determining forces that have received less notice wage stagnation and a dramatic increase in inequality in the u s over the preceding 35 years wage stagnation and heightened inequality generated three dynamics that made the economy vulnerable to systemic dysfunction the first is that they constrained consumption reducing profitable investment potential in the real economy and thereby encouraging an every wealthier elite to flood financial markets with credit helping keep interest rates low encouraging the creation of new credit instruments and greater indebtedness and fueling speculation the second dynamic is that consumption externalities were generated forcing individuals to struggle harder to find ways to maintain the welfare of their families and maintain their relative social status the consequence was that over the preceding three decades household saving rates plummeted households took on ever greater debt and worked longer hours the third dynamic is that as the rich took larger shares of income and wealth they gained more command over ideology and hence politics reducing the size of government cutting taxes on the rich and reducing welfare for the poor deregulating the economy and failing to regulate newly evolving credit instruments flowed out of this ideology

top income shares and aggregate wealth income ratio in a two class corporate economy this paper examines some determinants of top income shares and the aggregate wealth income ratio in the usa the paper first points out the difficulties in piketty s neo classical version of explanation of us income inequality which stresses the effect of the rising aggregate wealth income ratio and high elasticity of factor substitution second the analysis based on a cambridge two class model along the lines of kaldor 1955 56 1966 and pasinetti 1962 highlights the role of financialization in increasing inequality third the analysis suggests that the rise in the aggregate wealth income ratio from 1980 to 2007 in the usa is explained mostly by asset price inflation not by technical relations finally the analysis examines the effects of the slowdown in capital accumulation on income distribution and wealth income ratios which are very different from those in piketty s capital in the twenty first century

on the utilisation controversy a theoretical and empirical discussion of the kaleckian model of growth and distribution this paper examines the utilisation controversy around the kaleckian model of growth and distribution we show that the federal reserve data on capacity utilisation which have been used by both sides of this debate are the wrong kind of data for the issue under examination instead a more appropriate measurement can be derived from the data on the average workweek of capital we argue that the long run dynamic adjustment proposed by kaleckian scholars lacks a coherent economic rationale we provide an alternative path towards the endogeneity of the desired utilisation at the micro and macro levels finally we examine the proposed adjustment mechanism econometrically our results verify the endogeneity of the normal utilisation rate

a minsky crisis a model is developed to illustrate hyman minsky s financial crisis theories a key assumption is that the level of wealth in the economy is determined mac roeconomically with the value of firms assets responding to the state of confidence as reflected by discounted quasi rents on capital the second assumption is that there is high substitutability between liabilities of firms and money in the public s portfolio a downward shift in anticipated profits leads wealth to contract and the public to shift portfolio preferences toward money interest rates rise leading to further dampening of expected profits and a debt deflation crisis can occur

individualism collectivism private benefits of control and earnings management a cross culture comparison using private benefits of control and earnings management data from 41 countries and regions we provide strong evidence that cultures together with legal rules and law enforcement play a critical role in shaping corporate behavior more specifically we find that private benefits of control are larger and earnings management is more severe in collectivist as opposed to individualist cultures consistent with the argument that agency problems between corporate insiders and outside investors are severe in collectivist culture these results are robust to the inclusion of controls for country wealth economic heterogeneity across countries and international differences in ownership concentration

long run variation in capacity utilization in the presence of a fixed normal rate a generic kalecki robinson model of growth is developed that subject to different closures illustrates the different channels through which the economy can adjust to a change in demand conditions in the long run the closures are shown to have different implications for the behaviour of the rate of capacity utilization and hence whether and how the economy achieves a fully adjusted position equalization of the actual and normal rates of capacity utilization assuming that the normal rate of capacity utilization is exogenously fixed it is then shown that variation in the actual capacity utilization rate can nevertheless occur at least within limits without triggering harrodian instability this result emanates from a discontinuity in the investment function that is grounded in harrod s own macrodynamics so that it is ultimately the combination of harrodian and kaleckian dynamics that gives rise to long run variations in the actual rate of capacity utilization in the presence of a fixed normal rate aggregate and industry level us capacity utilization data are then used to calculate possible bands within which the rate of capacity utilization may vary without triggering harrodian instability a key finding is that the conditions necessary for the latter appear to be relatively rare

on the conservation of distance in international trade the volume of world trade has grown more than twice as fast as real world income since 1980 surprisingly the effect of distance on trade has increased during this period it could be that countries are trading greater volumes of goods that are highly sensitive to distance an alternative explanation is that distance has become more import for a significant share of goods using highly disaggregated bilateral trade data we find that adjustment in the composition of trade has not influenced the way in which distance affects trade in contrast for about 25 percent of industries distance has become more important this implies that the increased distance sensitivity of trade is a result of a change in relative trade costs that affects many industries as opposed to a shift to more distance sensitive products we also find that homogeneous products are twice as likely to have become more distance sensitive as compared with differentiated goods this is consistent with the hypothesis that falling search costs resulting from improvements in transport and communications are relatively more important for differentiated goods the results offer no evidence of the death of distance rather they suggest that distance related relative trade costs have remained unchanged or shifted in favor of proximate markets

finance saving and accumulation this paper analyzes the interaction between financial and real variables in different time frames and monetary regimes firms finance investment through retained earnings new issues or bank loans and households desired portfolio of financial assets is related to current income flows the average saving propensity becomes an endogenous variable determined jointly by household and firm decisions and it is shown that changes in the basic parameters give rise to both saving and valuation effects contrary to standard keynesian results an increase in a saving parameter may be expansionary if the valuation effect dominates the saving effect copyright 1988 by oxford university press

post keynesian stock flow consistent modelling a survey the aim of the paper is to provide an overview of the current stock ow consistent sfc literature indeed we feel the sfc approach has recently led to a blossoming literature requiring a new summary after the work of dos santos and above all after the publication of the main reference work on the methodology godley and lavoie s monetary economics an integrated approach to credit money income production and wealth the paper is developed along the following lines first a brief historical analysis investigates the roots of this class of models that can be traced as far back as 1949 and the work of copeland second the competing points of view regarding some of its main controversial aspects are underlined and used to classify the different methodological approaches followed in using these models namely we discuss i how the models are solved ii the treatment of time and its implication and ii the need or not for microfoundations these results are then used in the third section of the paper to develop a bifocal perspective which allows us to divide the literature reviewed according to both its subject and the methodology we explore various topics such as financialisation exchange rate modelling policy implication the need for a common framework within the post keynesian literature and the empirical use of sfc models finally the conclusions present some hypotheses and wishes for the possible lines of development of sfc models

heterodox theories of economic growth and income distribution a partial survey heterodox theories of economic growth and income distribution are surveyed focusing on major theories and recent contributions first a general framework for examining growth and distribution is discussed in terms of which classical marxian and post keynesian kaleckian and other theories are presented since this framework examines how variables are determined in equilibrium second dynamics behind equilibria are examined focusing on goods market and labor market changes third the framework is extended in a variety of ways to examine additional models addressing productivity growth and technical change money and inflation finance and debt additional distributional considerations multisector issues open economy questions and the environment it is concluded that the literature on heterodox theories of growth and distribution is vibrant large and growing and addresses many issues that are ignored or neglected in orthodox theories including power unemployment and aggregate demand

stagnation income distribution and monopoly power the deceleration in the rate of industrial growth in the indian economy since the middlesixties initially interpreted by some as a temporary downward deviation from trend hasnow come to be generally accepted as reflecting long run tendencies towards stagnation several explanations for these tendencies have been offered bhagwati and desai 1970 and bhagwati and srinivasan 1975 have focused on inefficiencies and the misallocationof resources arising from industrial policies pursued by the government others chakravarty 1974 raj 1976 and vaidyanathan 1974 among them have emphasisedthe sluggishness of agricultural growth which is alleged to have retarded industrial growthby limiting markets and the supply of wage goods and raw materials a third view reflectedin srinivasan and narayana 1977 for example has put the blame on a slackening of invest ment demand due to lower public investment but does not explain why public investmentfell or why its fall restrained industrial growth finally there is the explanation put forthin bagchi 1970 1975 1982 in nayyar 1978 and in parts of mitra 1977 that inequali ties in income distribution have resulted in a limited demand for industrial goods reducedincentives for investment and therefore reduced growth this view seems to suggest apositive relation between growth and income equality which is opposed to the generallyaccepted idea derived from cambridge growth models that higher growth requires greaterinequality the purpose of this paper is to examine the last explanation by considering the inter action between growth and income distribution in an underdeveloped economy with thehelp of a simple macroeconomic model the model is a stylisation of the indian economy so that we will be able to use the model to assess the argument that a deceleration in therate of growth of the indian industrial economy could have been caused by an unequaldistribution of income the argument will not be made that this income distributional con straint is the binding constraint on industrial growth the model will merely examine theinternal consistency of the argument that a bad income distribution could explain stagnation in the sense of reduced growth and show that in the indian context as in other similarcontexts this argument can be put forward in explaining stagnation our argument is first presented with a highly simplified schematisation of the indianeconomy which we shall call the basic model the economy modelled produces only one

consequences of cultural practices for entrepreneurial behaviors although national culture is an important regulator of entrepreneurship there is a dearth of studies that 1 explore the effects of national cultural practices on entrepreneurial behaviors by individuals 2 use appropriate multilevel research designs 3 consider the effects of culture on different entrepreneurial behaviors such as entry and post entry growth aspirations we combined global entrepreneurship monitor gem and global leadership and organizational behavior effectiveness globe data from 42 countries for 2005 2008 to address these gaps using a multilevel design we found societal institutional collectivism practices negatively associated with entrepreneurial entry but positively associated with entrepreneurial growth aspirations uncertainty avoidance practices were negatively associated with entry but not with growth aspirations and performance orientation practices were positively associated with entry our analysis highlights the differential effects of cultural practices on entrepreneurial entry and growth aspirations and demonstrates the value of multilevel techniques in analyzing the effect of culture on entrepreneurship

firms leverage ratio and the financial instability hypothesis an empirical investigation for the us economy 1970 2014 there are many minskian interpretations of how financial fragility builds up reflecting the unsolved tensions regarding the transition from micro to macro results in minsky s financial instability hypothesis fih using firm level and macroeconomic data to comply with the variety of fih s interpretations we empirically assess the relations between leverage and financial fragility in the us economy 1970 2014 to evaluate firms financial fragility we deploy minsky s scale from the financially sounder to the more fragile firms hedge speculative and ponzi the main findings are the following i the evolution of the aggregate leverage ratio does not account for the systemic financial fragility measured by the frequency of speculative and ponzi firms and ii within the biggest firms the leverage has increased along with the incidence of hedge financing and for the smallest firms group the opposite has happened we conclude that a positive relation between leverage and financial fragility cannot be deemed to be a general outcome

the demands of finance and the glass ceiling of profit without investment in post keynesian recent works the profit without investment case has made its appearance as a particular accumulation regime one claiming along with two others the contractive and the expansive case that it can account for the different conceivable dynamic patterns at work in financialised capitalism actually profit without investment or rather profit beyond investment is in the very nature of capitalism it is not a special case the dividend channel is an essential component of profit formation we show that its enabling condition and what at the same time limits its width is firms resort to debt beyond a certain point the divorce between dividends and investment is such that firms policies leave their viable domain a domain bounded by their wishes to be self financing past that point any increase in profits runs into a glass ceiling in terms of outlets for those profits it is when the demands of finance i e of shareholders reach this limit that the three regimes identified in the literature make their appearance including the one called profit without investment seen in this light these regimes are therefore all cases of profit without investment ones that take on some reality and some plausibility when finance tries to drag profit without accumulation outside of its viable domain

attitudes toward cooperative strategies a cross cultural analysis of entrepreneurs because entrepreneurs mature within a societal context their attitudes toward cooperation are likely to be influenced by the underlying values of their society using a seven nation sample we find that entrepreneurs from feminine collective and uncertainty avoiding societies have a greater appreciation for the strategic importance of cooperative strategies than their counterparts moreover entrepreneurs from feminine societies place greater emphasis on partner commonality in terms of objectives and values to ensure cooperative success whereas those from individualistic societies emphasize contractual safeguards

macroeconomic implications of financialisation a growing literature suggests that financialisation may weaken the performance of non financial corporations and constrain the growth of aggregate demand this paper uses two alternative approaches one derived from skott and one from lavoie and godley and two different settings a labour constrained setting and a dual economy setting to evaluate some of the claims that have been made our analysis which pays explicit attention to financial stock flow relations suggests that the qualitative effects of financialisation are insensitive to the precise specification of household saving behaviour but depend critically on the labour market assumptions labour constrained versus dual and the specification of the investment function harrodian versus kaleckian

the kaleckian model of growth and distribution and its neo ricardian and neo marxian critiques this paper analyzes the newer kaleckian models of growth and distribution and the criticisms that have been addressed to them by neo marxian and neo ricardian authors the models discussed assume overhead labor costs and target return pricing the main issues are the form of the investment function and the notions of normal rates of profit and of normal rates of capacity utilization despite the relevance of and often the similarity between the neo marxian and neo ricardian critiques it is shown that the main features of the kaleckian growth model may still be preserved c 1995 academic press limited copyright 1995 by oxford university press

the effect of national culture on the choice of entry mode characteristics of national cultures have frequently been claimed to influence the selection of entry modes this article investigates this claim by developing a theoretical argument for why culture should influence the choice of entry two hypotheses are derived which relate culture to entry mode choice one focusing on the cultural distance between countries the other on attitudes towards uncertainty avoidance using a multinomial logit model and controlling for other effects the hypotheses are tested by analysing data on 228 entries into the united states market by acquisition wholly owned greenfield and joint venture empirical support for the effect of national culture on entry choice is found

interfirm diversity organizational learning and longevity in global strategic alliances organizational theorists have correctly argued that the emergence and maintenance of robust cooperation between global strategic alliance partners is related to the diversity in the partners characteristics yet previous research has failed to systematically delineate the important dimensions of interfirm diversity and integrate the dimensions into a unified framework of analysis this paper develops a multilevel typology of interfirm diversity and focuses on organizational learning and adaptation as critical processes that dynamically moderate diversity s impact on alliance longevity and effectiveness

effective demand class struggle and cyclical growth the paper presents an analytical model of endogenous cyclical growth in a pure capitalist economy the model integrates keynesian ideas on effective demand with a marxian emphasis on class struggle and the reserve army of labor for reasonable parameter values the model has a unique nontrivial balanced growth equilibrium the equilibrium is unstable and using the poincare bendixson theorem it is shown that the economy will exhibit perpetual fluctuations around the balanced growth path copyright 1989 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

a technique for indicating comparative and perdicting changes in trade ratios this paper estimates relative differences in factor prices and thus industry comparative cost differences between the united states and each of eight country groups by relating differences in factor use requirements and actual bilateral export import ratios across industries predictions concerning changes in industry export import ratios are also made and tested against actual subsequent changes by comparing these trade ratios with those expected on the basis of the estimated average differences in factor costs and assuming that adjustment lags are the major reason for the differences between these ratios

the magnitude of menu costs direct evidence from large u s supermarket chains we use store level data to document the exact process of changing prices and to directly measure menu costs at five multistore supermarket chains we show that changing prices in these establishments is a complex process requiring dozens of steps and a nontrivial amount of resources the menu costs average 105 887 year per store comprising 0 70 percent of revenues 35 2 percent of net margins and 0 52 price change these menu costs may be forming a barrier to price changes specifically 1 a supermarket chain facing higher menu costs due to item pricing laws that require a separate price tag on each item changes prices two and one half times less frequently than the other four chains 2 within this chain the prices of products exempt from the law are changed over three times more frequently than the products subject to the law in principle fixed costs of changing prices can be observed and measured in practice such costs take disparate forms in different firms and we have no data on their magnitude so the theory can be tested at best indirectly at worst not at all alan blinder 1991 p 90

dynamic decision making a cross cultural comparison of u s and peruvian export managers export managers from the u s and peru completed a survey designed to measure cooperative decisions during a sequence of three simulated interactions with business partners during the initial stage of the relationship the decisions of peruvian export managers reflect less trust than do those of their u s counterparts during the second stage peruvian exporters respond differently to weak cheating results generally are consistent with cultural differences in attitudes toward in group v out group members however the influence of cultural differences gradually erodes in favor of personal characteristics and relationship specific history suggesting that cultural differences between business partners decline in importance as they get to know each other

financialisation and tendencies towards stagnation the role of macroeconomic regime changes in the course of and after the financial and economic crisis 2007 09

bank profitability leverage and financial instability a minsky harrod model this paper develops a stock flow consistent macroeconomic model where bank profitability and bank leverage play a crucial role in the determination of firms liability structure the model assumes that banks credit supply depends on bank profitability as well as firms profit interest ratio our analysis suggests that a strong expansionary effect of bank profitability on credit supply tends to destabilise the economy leading to cycles driven by the interactions between firms and banks financial behaviour the formal framework is used to discuss hyman minsky s proposal in his stabilizing an unstable economy for the control over the permissible leverage ratios and payout ratios of banks copyright oxford university press

trade geography and the skill premium in u s manufacturing i introduction the discernible increase in wage inequality in developed countries over the past several decades has been a topic of considerable interest in both the international trade and labor economics literatures a number of studies have identified at least some role for international trade in these increasing wage disparities 1 recent contributions to the new economic geography literature by head and mayer 2006 hanson 2005 mion 2004 and redding and venables 2004 have emphasized the influence of the geography of trade on wages suggesting that countries or regions with access to larger markets have higher wages in this paper we unite these two strands of the literature by developing a model that examines whether the wage increases attributed to access to larger markets are non neutral redding and venables 2004 henceforth rv develop a structural model of trade relating access to larger markets to per capita incomes they estimate a generalized gravity equation using world trade data to construct empirical proxies for market and supplier access these are trade cost weighted measures of export demand and import supply respectively that take into account the geographical distribution of trade flows market access measures the size of the market that can be reached by firms positioned in a given country supplier access measures the ease at which firms in a given country can acquire intermediate inputs rv show that per capita incomes are increasing in both of these measures their model however does not differentiate between labor types and therefore does not address the issue of whether market access has different influences on skilled workers and unskilled workers there is a good reason to believe that the wage increases attributed to market and supplier access would be non neutral across both skill groups and industries first a number of recent theoretical contributions demonstrate a positive relationship between market size and the skill premium epifani and gancia 2006 2008 show that in the context of a new trade model scale itself is skilled biased under very reasonable assumptions and they provide supporting empirical evidence in addition the new economic geography models of epifani 2005 and amiti 2005 which explicitly account for factor endowment differences between countries suggest that the forward and backward linkages provided by agglomeration exacerbate the stolper samuelson effect leading to relative wages that overshoot the values that would be observed in the absence of such linkages second redding and schott 2003 provide empirical evidence suggesting that in countries with higher values of market and supplier access individuals have greater incentive to invest in skills leading to a higher return to education and a larger skill premium and third as feenstra and hanson 1999 henceforth fh demonstrate if production is fragmented changes in the parameters of the production function over time can shift the composition of activities that are performed abroad in a given industry leading to non neutral effects on productivity and factor prices countries and industries with better access to overseas production activities that is larger levels of supplier access would be more likely to observe such changes in this paper we augment the methodology in rv to examine the relationship between market and supplier access and the skill premium in u s manufacturing industries our analysis differs from rv in two principal ways first we develop a model that relates market and supplier access to value added prices rather than to wages this is the natural generalization to a model with more than one internationally immobile factor of production second we use industries as our unit of analysis rather than countries an industry level analysis allows us to gauge the effects of market and supplier access on industry value added prices which we can then decompose into mandated factor price adjustments

financialisation and the slowdown of accumulation over the past decades financial investment of non financial businesses has been rising and accumulation of capital goods has been declining the first part of the paper offers a novel theory to explain this phenomenon financialization the shareholder revolution and the development of a market for corporate control have shifted power to shareholders and thus changed management priorities leading to a reduction in the desired growth rate in the second part the link between accumulation and financialization is tested econometrically by means of a time series analysis of aggregate business investment for usa uk france and germany extensive test of robustness are performed for the first three countries evidence that confirms the negative effect of financialization on accumulation is found author s abstract

some instability puzzles in kaleckian models of growth and distribution a critical survey we tackle the issue of the possible instability of the kaleckian distribution and growth model distinguishing between keynesian and harrodian instability we review various mechanisms that have been proposed by critics of the kaleckian model to tame harrodian instability while bringing back the rate of utilisation to its normal rate we find that the mechanisms that have been suggested are far from convincing therefore we conclude that it may be premature for the critics of the kaleckian model to dismiss the endogeneity of the rate of capacity utilisation in long run growth equilibrium copyright the author 2010 published by oxford university press on behalf of the cambridge political economy society all rights reserved oxford university press

entrepreneurship and growth the strategic use of external resources abstract a common characteristic of entrepreneurial farms is fast growth a common problem for their managers is obtaining enough resources to accommodate that growth a typical entrepreneur either individual or corporate often desires to pursue a detected opportunity but lacks the necessary resources to make it happen again gaining access to those resources becomes the first entrepreneurial problem one of the most efficient weapons used by entrepreneurial firms to gain market share from larger more powerful corporations is their flexibility but the progressive accumulation of resources that growth often entails brings almost necessarily a loss of that very flexibility that made the firm successful in the first place this can be termed the second entrepreneurial dilemma networking practices are a way to overcome these problems essentially networking is a system by which entrepreneurs can tap resources that are external to them i e that they don t control in its simplest form networking consists of the use of all personal relationships to obtain advice financing insider sales etc birley 1986 in its most sophisticated form entrepreneurs set up an elaborate web of relationships between companies most of them of similar entrepreneurial characteristics that are extremely efficient and flexible at delivering a product or service in all cases we find that the ability to exploit resources that are outside the entrepreneur s control is a constant of entrepreneurial high growth management this is why entrepreneurs have been defined as being primarily motivated by the pursuit of opportunities as opposed to those managers exclusively concerned with the proper management of the resources already controlled by their firm stevenson 1983 stevenson and gumpert 1985 this paper proposes a view whereby the essence of entrepreneurship is seen precisely in the ability and willingness to use external resources a statistical validation of the main hypothesis i e that entrepreneurial fast growing firms do use more external resources than their competitors is then attempted the results strongly support the hypothesis it is found that the fastest growing firms in a very large sample of public companies are much less integrated make more use of external resources than their competitors in addition those firms that are at the forefront of using external resources grow on average much faster more than 10 every year than their competitors over a long period of time ten years this study s implication for managers seems clear it constitutes yet another piece of evidence in favor of the efficiency of networking arrangements being flexible enough to use external resources allows the entrepreneurial firm to break through the limits to sustainable growth and at the same time lowers its risk for it taps into someone else s experience and know how entrepreneurs and entrepreneurial managers must not be deterred by the lack of resources in the pursuit of opportunities

national institutional structures transaction cost economizing and competitive advantage the case of japan japan s economic success since world war ii has been striking modern japan was the first major industrial economy to emerge from outside the western tradition economically devastated in 1945 by 1990 japan had the world s second largest economy and a gdp per head 20 percent greater than that of the united states in this paper it is argued that one reason for japan s success is that the costs of achieving cooperation and specialization are lower in japan than in the west cooperation and specialization have been acknowledged to have a beneficial impact upon productivity ever since adam smith wrote about cooperative specialization in the context of the division of labor modern economic theory however suggest that in a world of self interested individuals the costs of achieving cooperation and specialization are substantial in this paper it is argued that the cultural value system that japan has inherited from its preindustrial past and particularly the tokugawa period helps facilitate cooperation b

rising household debt its causes and macroeconomic implications a long period analysis the article analyses the rise in household indebtedness from the point of view of its causes and long run macroeconomic implications the analysis is focussed on the us case differently from life cycle interpretations of the phenomenon and from interpretations in terms of erratic deviations of current income flows from their long run trend the rising household debt is viewed as the outcome of persistent changes in income distribution and growing income inequalities through household debt low wages appear to have been brought to coexist with relatively high levels of aggregate demand thus providing the solution to the contradiction between the necessity of high and rising consumption levels for the growth of the system s actual output and a framework of antagonistic conditions of distribution which keeps within limits the real income of the vast majority of society the question of the long run sustainability of this substitution of loans for wages is finally discussed copyright the author 2008 published by oxford university press on behalf of the cambridge political economy society all rights reserved oxford university press

trade technology and uk wage inequality this paper examines the impact of international trade and technical change on changes in the uk skill premium we first measure trade as changes in product prices and technical change as tfp growth then we relate price and tfp changes to a set of underlying forces among our results are a changes in prices not tfp were the major force behind the rise in inequality in the 1980s b changes in oecd prices and uk tariffs significantly raised 1980s skill premia through their effects on prices and that industry concentration significantly raised 1980s skill premia through its effect on tfp