Labor Market Segmentation In A Two-Sector Model Of An Open Economy
AbstractThe effects of labor market segmentation in a two-sector open economy model are examined. The model demonstrates how the structure of the labor market affects the real exchange rate, and is then used to examine the effects of two common labor market policies: increasing the degree of primary market coverage, and implementing wage restraint in the primary market. Increasing coverage increases unemployment and leads to a real appreciation. Real wage restraint, however, reduces unemployment and has ambiguous but probably small effects on the real exchange rate.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 90/33.
Date of creation: 01 Apr 1990
Date of revision:
Contact details of provider:
Postal: International Monetary Fund, Washington, DC USA
Phone: (202) 623-7000
Fax: (202) 623-4661
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC
Other versions of this item:
- Dimitri G. Demekas, 1990. "Labor Market Segmentation in a Two-Sector Model of an Open Economy," IMF Staff Papers, Palgrave Macmillan, vol. 37(4), pages 849-864, December.
- NEP-ALL-2013-02-16 (All new papers)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Pierre-Richard Agenor & Joshua Aizenman, 1994.
"Macroeconomic Adjustment with Segmented Labor Markets,"
NBER Working Papers
4769, National Bureau of Economic Research, Inc.
- Agenor, Pierre-Richard & Aizenman, Joshua, 1999. "Macroeconomic adjustment with segmented labor markets," Journal of Development Economics, Elsevier, vol. 58(2), pages 277-296, April.
- Joshua Aizenman & Pierre-Richard AgÃ©nor, 1994. "Macroeconomic Adjustment with Segmented Labor Markets," IMF Working Papers 94/56, International Monetary Fund.
- Kalulumia, Pene & Nyankiye, Francine, 2000. "Labor Adjustment Costs, Macroeconomic Shocks and Real Business Cycles in a Small Open Economy," Journal of Macroeconomics, Elsevier, vol. 22(4), pages 671-694, October.
- Tatiana Blinova & Victor Rusanovsky, 2003. "Regional strategies and Unemployment Risks in Russia’s Regional Labor markets (?)," ERSA conference papers ersa03p454, European Regional Science Association.
- Blinova, Tatiana V., 2002. "Rural Development and Unemployment Reduction," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24821, European Association of Agricultural Economists.
- Ahmed, Habib & Miller, Stephen M., 1997.
"Monetary and exchange rate policy in multisectoral economies,"
Journal of Economics and Business,
Elsevier, vol. 49(4), pages 321-334.
- Habib Ahmed & Stephen M. Miller, 1996. "Monetary and Exchange Rate Policy in Multisectorial Economies," Working papers 1996-11, University of Connecticut, Department of Economics.
- Blinova Tatiana & Rusanovsky Victor, 2002. "Economic Policy, Industrial Structure, and Unemployment in Russia's Regions," EERC Working Paper Series 01-06e, EERC Research Network, Russia and CIS.
- Agenor, Pierre-Richard & Santaella, Julio A., 1998. "Efficiency wages, disinflation and labor mobility," Journal of Economic Dynamics and Control, Elsevier, vol. 22(2), pages 267-291, February.
- Amélie Barbier-Gauchard & Francesco De Palma & Giuseppe Diana, 2012. "Currency devaluation with dual labor market : Which perspectives for the Euro Zone ?," Working Papers of BETA 2012-04, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
- Blinova, Tatiana & Rusanovsky, Victor, 2002. "Economic policy and unemployment in Russia´s regions," ERSA conference papers ersa02p234, European Regional Science Association.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).
If references are entirely missing, you can add them using this form.