Lewis Through A Looking Glass: Public Sector Employment, Rent-Seeking And Economic Growth
AbstractThis paper argues that the labor transfer process outlined by the Lewis model (1954) can give rise to surplus labour - in the sense than the marginal product of labour is less that the wage - in the public part of the modern sector and that this may deprive the modern sector of its dynamism. Moreover, creating sheltered employment tends to be self-perpetuating. It creates and consolidates vested interests that seek to perpetuate the protected jobs. In the inverse of the Lewis model, the extent of surplus labour increases, rather than diminishes, over time.
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Bibliographic InfoPaper provided by Department of Economics, Williams College in its series Center for Development Economics with number 108.
Length: 42 pages
Date of creation: 1988
Date of revision:
Other versions of this item:
- Gelb, Alan & Sabot, Richard H. & Knight, John B., 1988. "Lewis through a looking glass : public sector employment, rent-seeking, and economic growth," Policy Research Working Paper Series 133, The World Bank.
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.:
- Hill, Hal, 1982. "State enterprises in a competitive industry: An Indonesian case study," World Development, Elsevier, vol. 10(11), pages 1015-1023, November.
- Alan A. Tait & Peter S. Heller, 1983. "Government Employment and Pay: Some International Comparisons," IMF Occasional Papers 24, International Monetary Fund.
- Krueger, Anne O. & Tuncer, Baran, 1982. "Growth of factor productivity in Turkish manufacturing industries," Journal of Development Economics, Elsevier, vol. 11(3), pages 307-325, December.
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- Francesco Caselli, 2005.
"Accounting for Cross-Country Income Differences,"
CEP Discussion Papers
dp0667, Centre for Economic Performance, LSE.
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