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Labour-Market Aspects of Enclave-Led Growth

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  • Ronald W. Jones
  • Sugata Marjit

Abstract

Economic activity sometimes brings advanced technology to an enclave in a less-developed region where low-wage labor can be combined with skilled labor and capital from the advanced region to produce commodities for export to world markets. Potential skills of local workers may not be known to either workers or employers until some time elapses after the job. Those revealed to possess skills replace high-paid alien workers. This paper describes the effect on the local labor market of this process both during the period when alien workers are required and after their departure. The role of a minimum-wage requirement is also analysed.

Suggested Citation

  • Ronald W. Jones & Sugata Marjit, 1995. "Labour-Market Aspects of Enclave-Led Growth," Canadian Journal of Economics, Canadian Economics Association, vol. 28(s1), pages 76-93, November.
  • Handle: RePEc:cje:issued:v:28:y:1995:i:s1:p:76-93
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    1. repec:eee:reveco:v:49:y:2017:i:c:p:582-595 is not listed on IDEAS
    2. Ronald W. Jones, 1995. "The Discipline of International Trade," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 131(III), pages 273-288, September.
    3. Broll, Udo & Hansen, Sabine & Marjit, Sugata, 2004. "Domestic labor, foreign capital and national welfare," Dresden Discussion Paper Series in Economics 12/04, Technische Universit├Ąt Dresden, Faculty of Business and Economics, Department of Economics.
    4. repec:eee:ecmode:v:66:y:2017:i:c:p:19-29 is not listed on IDEAS
    5. Ronald Jones & Sugata Marjit, 2009. "Competitive trade models and real world features," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 41(1), pages 163-174, October.

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