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.
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- repec:imf:imfocp:24 is not listed on IDEAS
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in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 9, pages 679-741
- Francesco Caselli, 2004. "Accounting for Cross-Country Income Differences," NBER Working Papers 10828, National Bureau of Economic Research, Inc.
- Caselli, Francesco, 2004. "Accounting for Cross-Country Income Differences," CEPR Discussion Papers 4703, C.E.P.R. Discussion Papers.
- Francesco Caselli, 2005. "Accounting for Cross-Country Income Differences," CEP Discussion Papers dp0667, Centre for Economic Performance, LSE.
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