Labor Market Representation in Quantitative Macroeconomic Models for Developing Countries: An Application to Côte d'Ivoire
Abstract
This paper presents a quantitative macroeconomic model that accounts for key features of the labor market in developing countries. Primarily inspired by Côte d'Ivoire, the model contrasts a formal urban sector, where wages are rigidly fixed and employment is subject to firms' profit-seeking behavior, with urban and rural informal sectors, where wages are flexible and employment is affected by fluctuations in formal sector employment. Dynamic simulations assess the impact on key macroeconomic variables of exogenous and policy-induced shocks, highlighting the roles of rural-urban migrations and capital accumulation in the informal urban sector.Download Info
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Bibliographic Info
Article provided by Palgrave Macmillan in its journal Staff Papers - International Monetary Fund.
Volume (Year): 43 (1996)
Issue (Month): 2 (June)
Pages: 419-451
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Handle: RePEc:pal:imfstp:v:43:y:1996:i:2:p:419-451
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For corrections or technical questions regarding this item, or to correct its listing, contact: (Elizabeth Gale).
Related research
Keywords:Find related papers by JEL classification:
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J4 - Labor and Demographic Economics - - Particular Labor Markets
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Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Agenor, Pierre-Richard & Izquierdo, Alejandro & Fofack, Hippolyte, 2003. "The integrated macroeconomic model for poverty analysis : a quantitative macroeconomic framework for the analysis of poverty reduction strategies," Policy Research Working Paper Series 3092, The World Bank.
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