Job-search and foreign capital inflow — A two sector general equilibrium analysis
AbstractThe purpose of this paper is to extend the Fields' (1989) multi sector job-search model by introducing international trade and capital. Two types of capital are considered: fixed capital and mobile capital. The effects of search intensity and the inflow of foreign capital on the volume and the rate of urban unemployment and on the social welfare are also examined in both of the two cases. The main finding is: more efficient on-the-job search from the rural sector raises unemployment rate when capital is mobile between the two sectors. This is counterproductive to the standard result.
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Bibliographic InfoArticle provided by Elsevier in its journal Economic Modelling.
Volume (Year): 28 (2011)
Issue (Month): 6 ()
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Web page: http://www.elsevier.com/locate/inca/30411
Job search; Foreign capital; Unemployment rate; Ex-post labor; Ex-ante labor; General equilibrium;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- J10 - Labor and Demographic Economics - - Demographic Economics - - - General
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
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- Chaudhuri, Sarbajit & Bandopadhyay, Titas Kumar, 2012.
"Job-search and foreign capital inflow - a three sector general equilibrium analysis,"
38921, University Library of Munich, Germany.
- Chaudhuri, Sarbajit & Bandopadhyay, Titas Kumar, 2013. "Job-search and foreign capital inflow — A three-sector general equilibrium analysis," Economic Modelling, Elsevier, vol. 35(C), pages 159-169.
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