Advanced Search
MyIDEAS: Login to save this paper or follow this series

A guide to multisector labor market models

Contents:

Author Info

  • Fields, Gary S.
Registered author(s):

    Abstract

    This paper approaches labor markets through multisector modeling. The first main substantive section presents the essence of multisector modeling, in particular, the role of labor market dualism. Given that labor markets often consist of quite distinct segments, a useful and insightful analytical approach is to start with just two interrelated segments. The second main substantive section is on models of wages and employment in the formal economy. This section covers 1) the market-clearing labor market model and the presumed equilibrating forces, 2) above-market-clearing wages set institutionally, 3) above-market-clearing wages set by efficiency wage considerations, and 4) above-market-clearing wages set by worker behavior. The third main substantive section is on wages and employment in the informal economy. This section presents three characterizations of informal sector labor markets: 1) the informal economy as a free-entry sector that prospective workers enter only as a last resort, 2) the informal economy as a desirable sector that workers choose in preference to formal sector work, and 3) the informal economy with its own internal dualism, combining 1) and 2). The fourth main substantive section is on intersectoral linkages. The models here are: 1) the integrated labor market model with full market clearing, 2) crowding models, and 3) the Harris-Todaro model.

    Download Info

    If 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.
    File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2005/06/14/000090341_20050614143015/Rendered/PDF/325470PAPER0Mu1r0labor0mkts0SP00505.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by The World Bank in its series Social Protection Discussion Papers with number 32547.

    as in new window
    Length:
    Date of creation: 01 Apr 2005
    Date of revision:
    Handle: RePEc:wbk:hdnspu:32547

    Contact details of provider:
    Postal: 1818 H Street, N.W., Washington, DC 20433
    Phone: (202) 477-1234
    Email:
    Web page: http://www.worldbank.org/
    More information through EDIRC

    Related research

    Keywords: Environmental Economics&Policies; Banks&Banking Reform; Municipal Financial Management; Labor Standards; Economic Theory&Research;

    References

    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.:
    as in new window
    1. Douglas Marcouiller, S.J. & Veronica Ruiz de Castilla & Christopher Woodruff, 1995. "Formal Measures of the Informal Sector Wage Gap in Mexico, El Salvador, and Peru," Boston College Working Papers in Economics, Boston College Department of Economics 294., Boston College Department of Economics.
    2. Fields, Gary S. & Cichello, Paul & Freije, Samuel & Menéndez, Marta & Newhouse, David, 2003. "Household income dynamics : a four-country story," Economics Papers from University Paris Dauphine, Paris Dauphine University 123456789/1562, Paris Dauphine University.
    3. Fields, Gary S, 1984. "Employment, Income Distribution and Economic Growth in Seven Small Open Economies," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 94(373), pages 74-83, March.
    4. Chakravarty, Satya R. & Dutta, Bhaskar, 1990. "Migration and welfare," European Journal of Political Economy, Elsevier, Elsevier, vol. 6(1), pages 119-138, August.
    5. Fields, Gary S, 1979. "A Welfare Economic Approach to Growth and Distribution in the Dual Economy," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 93(3), pages 325-53, August.
    6. Moene, Karl Ove, 1988. "A reformulation of the Harris-Todaro mechanism with endogenous wages," Economics Letters, Elsevier, Elsevier, vol. 27(4), pages 387-390.
    7. Fields, Gary S., 2005. "A welfare economic analysis of labor market policies in the Harris-Todaro model," Journal of Development Economics, Elsevier, Elsevier, vol. 76(1), pages 127-146, February.
    8. Joseph E. Stiglitz & Raaj Kumar Sah, 1983. "The Social Cost of Labor, and Project Evaluation: A General Approach," NBER Working Papers 1229, National Bureau of Economic Research, Inc.
    9. Fields, Gary S. & Wan, Henry Jr., 1989. "Wage-setting institutions and economic growth," World Development, Elsevier, Elsevier, vol. 17(9), pages 1471-1483, September.
    10. Fields, Gary S, 1979. "Income Inequality in Urban Colombia: A Decomposition Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 25(3), pages 327-41, September.
    11. Fields, Gary S., 1989. "On-the-job search in a labor market model : Ex ante choices and ex post outcomes," Journal of Development Economics, Elsevier, Elsevier, vol. 30(1), pages 159-178, January.
    12. Fields, Gary S, 1994. "Changing Labor Market Conditions and Economic Development in Hong Kong, the Republic of Korea, Singapore, and Taiwan, China," World Bank Economic Review, World Bank Group, World Bank Group, vol. 8(3), pages 395-414, September.
    13. Anand, Sudhir & Kanbur, S. M. R., 1993. "The Kuznets process and the inequality--development relationship," Journal of Development Economics, Elsevier, Elsevier, vol. 40(1), pages 25-52, February.
    14. Fields, Gary S., 1975. "Rural-urban migration, urban unemployment and underemployment, and job-search activity in LDCs," Journal of Development Economics, Elsevier, Elsevier, vol. 2(2), pages 165-187, June.
    15. Peter R. Fallon & Robert E. B. Lucas, 1989. "Job Security Regulations and the Dynamic Demand for Industrial Labor in India and Zimbabwe," Boston University - Institute for Economic Development, Boston University, Institute for Economic Development 2, Boston University, Institute for Economic Development.
    16. Fields, Gary S., 1997. "Wage floors and unemployment: A two-sector analysis," Labour Economics, Elsevier, Elsevier, vol. 4(1), pages 85-91, March.
    17. Knight, J B, 1976. "Explaining Income Distribution in Less Developed Countries: A Framework and an Agenda," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, Department of Economics, University of Oxford, vol. 38(3), pages 161-77, August.
    18. Abhijit V. Banerjee & Andrew F. Newman, 1990. "Occupational Choice and the Process of Development," Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science 911, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    19. Pierre Cahuc & André Zylberberg, 2004. "Labor Economics," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 026203316x, December.
    20. Heady, Christopher John, 1981. "Shadow Wages and Induced Migration," Oxford Economic Papers, Oxford University Press, vol. 33(1), pages 108-21, March.
    21. Corden, W M & Findlay, Ronald, 1975. "Urban Unemployment, Intersectoral Capital Mobility and Development Policy," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 42(165), pages 59-78, February.
    22. Moene, Karl Ove, 1992. "Poverty and Landownership," American Economic Review, American Economic Association, American Economic Association, vol. 82(1), pages 52-64, March.
    23. Bell, Clive, 1991. "Regional heterogeneity, migration, and shadow prices," Journal of Public Economics, Elsevier, Elsevier, vol. 46(1), pages 1-27, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Khan, M. Ali Khan, 2007. "The Harris-Todaro Hypothesis," MPRA Paper 2201, University Library of Munich, Germany.
    2. M. Ali Khan, 2007. "The Harris-Todaro Hypothesis," Labor Economics Working Papers 22206, East Asian Bureau of Economic Research.
    3. Pagés, Carmen & Stampini, Marco, 2007. "No Education, No Good Jobs? Evidence on the Relationship between Education and Labor Market Segmentation," IZA Discussion Papers 3187, Institute for the Study of Labor (IZA).
    4. Günther, Isabel & Launov, Andrey, 2006. "Competitive and Segmented Informal Labor Markets," W.E.P. - Würzburg Economic Papers, University of Würzburg, Chair for Monetary Policy and International Economics 72, University of Würzburg, Chair for Monetary Policy and International Economics.
    5. Bennett, John & Estrin, Saul, 2007. "Informality as a Stepping Stone: Entrepreneurial Entry in a Developing Economy," IZA Discussion Papers 2950, Institute for the Study of Labor (IZA).
    6. Gundogan, Naci & Bicerli, Mustafa Kemal, 2009. "Urbanization and Labor Market Informality in Developing Countries," MPRA Paper 18247, University Library of Munich, Germany.
    7. Olivier Bargain & Sumon Kumar Bhaumik & Manisha Chakrabarty & Zhong Zhao, 2009. "Earnings Differences Between Chinese And Indian Wage Earners, 1987-2004," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 55(s1), pages 562-587, 07.
    8. David Cook & Hiromi Nosaka, 2006. "Dual labor markets and business cycles," Proceedings, Federal Reserve Bank of San Francisco, Federal Reserve Bank of San Francisco, issue Jun.
    9. Jagannadha Tamvada, 2010. "Entrepreneurship and welfare," Small Business Economics, Springer, Springer, vol. 34(1), pages 65-79, January.
    10. Günther, Isabel & Launov, Andrey, 2012. "Informal employment in developing countries," Journal of Development Economics, Elsevier, Elsevier, vol. 97(1), pages 88-98.
    11. Carmen Pagés-Serra & Marco Stampini, 2007. "¿Sin formación no hay buenos empleos? Elementos de juicio sobre la relación entre la formación y la segmentación del mercado laboral," Research Department Publications, Inter-American Development Bank, Research Department 4562, Inter-American Development Bank, Research Department.
    12. Schröter, Lars, 2008. "Die Rolle des informellen Sektors in der wirtschaftlichen Entwicklung Argentiniens
      [The role of the informal sector in the economic development of Argentina]
      ," MPRA Paper 11661, University Library of Munich, Germany, revised 14 Nov 2008.
    13. Sasa Obradovic & Boris Siljkovic, 2012. "Social and Economic Measures for Reduction of Unemployment in Serbia and Their Effects on Poverty and Level of Development," Book Chapters, Institute of Economic Sciences, Institute of Economic Sciences.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:wbk:hdnspu:32547. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Raiden C. Dillard).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.