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Recession in the Skilled Sector and Implications for Informal Wage

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Author Info
Marjit, Sugata
Chaudhuri, Sarbajit
Kar, Saibal

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Abstract

Global recession is likely to hit the skilled sector or the so-called white goods, white collared sector in a typical developing economy. In this paper we try to analyze the impact of such an event on informal wage as the vast majority of the workforce in the developing world is employed in the unorganized or informal sector. In particular, we demonstrate the analytical possibility that a recession in the skilled sector will actually increase real informal wage.

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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 18003.

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Date of creation: 30 Apr 2009
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Handle: RePEc:pra:mprapa:18003

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Related research
Keywords: Recession; skill; capital-labor ratio; informal wage; general equilibrium;

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Find related papers by JEL classification:
E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Hartmut Lehmann & Norberto Pignatti, 2007. "Informal Employment Relationships and Labor Market Segmentation in Transition Economies: Evidence from Ukraine," IZA Discussion Papers 3269, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Funkhouser, Edward, 1997. "Demand-Side and Supply-Side Explanations for Barriers to Labor Market Mobility in Developing Countries: The Case of Guatemala," Economic Development and Cultural Change, University of Chicago Press, vol. 45(2), pages 341-66, January.
  3. Pinelopi Koujianou Goldberg & Nina Pavcnik, 2007. "The Effects of the Colombian Trade Liberalization on Urban Poverty," NBER Chapters, in: Globalization and Poverty, pages 241-290 National Bureau of Economic Research, Inc. [Downloadable!]
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  4. Sarbajit Chaudhuri, 2003. "How and how far to liberalize a developing economy with informal sector and factor market distortions," Journal of International Trade & Economic Development, Taylor and Francis Journals, vol. 12(4), pages 403-428, December. [Downloadable!] (restricted)
  5. Sarbajit Chaudhuri & Ujjaini Mukhopadhyay, 2002. "Economic liberalization and welfare in a model with an informal sector," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 10(1), pages 143-172, March. [Downloadable!] (restricted)
  6. Marjit, Sugata & Kar, Saibal & Acharyya, Rajat, 2007. "Agricultural prospects and informal wage in general equilibrium," Economic Modelling, Elsevier, vol. 24(3), pages 380-385, May. [Downloadable!] (restricted)
  7. Carruth, Alan A. & Oswald, Andrew J., 1981. "The determination of union and non-union wage rates," European Economic Review, Elsevier, vol. 16(2), pages 285-302. [Downloadable!] (restricted)
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This page was last updated on 2009-12-4.


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