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Should informal sector be subsidised?

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  • Bandopadhyay, Titas Kumar

Abstract

This paper explains the impact of output subsidy to the informal sector on urban unemployment and domestic factor income in a mobile capital model where urban formal wage is endogenous and the informal sector has global exposure.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 1775.

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Date of creation: 2006
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Handle: RePEc:pra:mprapa:1775

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Keywords: Informal sector; Subsidy;

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References

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  1. Quibria, M G, 1988. "Migration, Trade Unions, and the Informal Sector: A Note on Calvo," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(3), pages 557-63, August.
  2. Manjusri Bandyopadhyay & Manas Gupta, 1995. "Development policies in the presence of an informal sector: A note," Journal of Economics, Springer, vol. 61(3), pages 301-315, October.
  3. Khan, M. Ali & Naqvi, Syed Nawab Haider, 1983. "Capital markets and urban unemployment," Journal of International Economics, Elsevier, vol. 15(3-4), pages 367-385, November.
  4. Gupta, Manash Ranjan, 1987. "Rural-Urban Migration and Urban Unemployment: A Note," Scottish Journal of Political Economy, Scottish Economic Society, vol. 34(3), pages 295-305, August.
  5. Chandra, Vandana & Khan, M Ali, 1993. "Foreign Investment in the Presence of an Informal Sector," Economica, London School of Economics and Political Science, vol. 60(237), pages 79-103, February.
  6. Fields, Gary S., 1975. "Rural-urban migration, urban unemployment and underemployment, and job-search activity in LDCs," Journal of Development Economics, Elsevier, vol. 2(2), pages 165-187, June.
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