Dual labor market and strategic efficiency wage
AbstractWe consider a dual labor markets model in which the primary sector requires the presence of efficiency 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 38395.
Date of creation: 2003
Date of revision:
Solow condition; efficiency wage; dual labor markets;
Other versions of this item:
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
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