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Dual Labor Markets And Strategic Efficiency Wage

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  • Mohamed Jellal
  • Francois-Charles Wolff

Abstract

We consider a dual labor markets model in which the primary sector requires the presence of eMiciency wage, while the secondary sector is competitive. We show that the Solow condition does not hold in a Stackelberg equilibrium where the primary sector acts as a leader and the secondary one as a follower.[J41]

Suggested Citation

  • Mohamed Jellal & Francois-Charles Wolff, 2003. "Dual Labor Markets And Strategic Efficiency Wage," International Economic Journal, Taylor & Francis Journals, vol. 17(3), pages 99-112.
    • Handle: RePEc:taf:intecj:v:17:y:2003:i:3:p:99-112
    DOI: 10.1080/10168730300000006
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    Cited by:

    1. François-Charles Wolff & Mohamed Jellal & Khaled Bouabdallah, 2004. "Unemployment and work sharing in an efficiency wage model," Economics Bulletin, AccessEcon, vol. 10(3), pages 1-7.
    2. Marco Guerrazzi, 2020. "Efficiency-Wage Competition: What Happens as the Number of Players Increases?," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 6(1), pages 13-35, March.
    3. repec:ebl:ecbull:v:10:y:2004:i:3:p:1-7 is not listed on IDEAS
    4. Guerrazzi, Marco, 2012. "On involuntary unemployment: notes on efficiency-wage competition," MPRA Paper 38140, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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