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Sector Specific Wage Rigidity and Factor Accumulation

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  • HAMID BELADI

Abstract

Economic expansion resulting from factor accumulation is introduced in the mobile capital and small open economy version of the Harris‐Todaro model. Among other things, it is shown that economy expansion leads to normal effects on urban unemployment if land is introduced as a scarce input in the agricultural sector. However, capital accumulation and labour growth have indeterminate effects on the absolute level of urban unemployment.

Suggested Citation

  • Hamid Beladi, 1990. "Sector Specific Wage Rigidity and Factor Accumulation," The Economic Record, The Economic Society of Australia, vol. 66(1), pages 32-36, March.
    • Handle: RePEc:bla:ecorec:v:66:y:1990:i:1:p:32-36
    DOI: 10.1111/j.1475-4932.1990.tb02083.x
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    1. Brecher, Richard A. & Diaz Alejandro, Carlos F., 1977. "Tariffs, foreign capital and immiserizing growth," Journal of International Economics, Elsevier, vol. 7(4), pages 317-322, November.
    2. Jagdish N. Bhagwati, 1968. "Distortions and Immiserizing Growth: a Generalization," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 35(4), pages 481-485.
    3. McCool, Thomas J, 1982. "Wage Subsidies and Distortionary Taxes in a Mobile Capital Harris-Todaro Model," Economica, London School of Economics and Political Science, vol. 49(193), pages 69-79, February.
    4. Khan, M. Ali & Naqvi, Syed Nawab Haider, 1983. "Capital markets and urban unemployment," Journal of International Economics, Elsevier, vol. 15(3-4), pages 367-385, November.
    5. Khan, M. Ali, 1980. "The Harris-Todaro hypothesis and the Heckscher-Ohlin-Samuelson trade model : A synthesis," Journal of International Economics, Elsevier, vol. 10(4), pages 527-547, November.
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