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Pollution control under an urban binding minimum wage

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  • Hamid Beladi

    ()
    (Department of Economics and Finance, University of Dayton, Dayton, OH 45469, USA)

  • Ralph Frasca

    ()
    (Department of Economics and Finance, University of Dayton, Dayton, OH 45469, USA)

Abstract

In this paper, by using a generalized Harris-Todaro model that incorporates an urban non-polluting sector, and supposes a dual economy inherent in an LDC, we examine the backward incidence of pollution control on some key variables of interest. Given a relatively capital intensive polluting sector, stricter pollution controls may result in a reduction in unemployment, an increase in national income and migration from the agricultural sector. The results from our model differ from that of a previous model that demonstrated a reverse flow of labor to the agricultural sector from stricter pollution controls.

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Bibliographic Info

Article provided by Springer in its journal The Annals of Regional Science.

Volume (Year): 33 (1999)
Issue (Month): 4 ()
Pages: 523-533

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Handle: RePEc:spr:anresc:v:33:y:1999:i:4:p:523-533

Note: Received: December 1997/Accepted: June 1998
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Cited by:
  1. Stefan Csordas, 2013. "The general equilibrium effects of energy efficiency gains in developing countries with urban unemployment," Economics Bulletin, AccessEcon, vol. 33(3), pages 1969-1977.
  2. Chao, Chi-Chur & Laffargue, Jean-Pierre & Sgro, Pasquale M., 2012. "Environmental control, wage inequality and national welfare in a tourism economy," International Review of Economics & Finance, Elsevier, vol. 22(1), pages 201-207.
  3. Li, Xiaochun & Xu, Yuanting & Wang, Dianshuang, 2014. "Environment and labor movement of skilled labor and unskilled labor between sectors," Economic Modelling, Elsevier, vol. 38(C), pages 367-371.

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