Sector-specific sticky wages and wage subsidy: a note
This note sketches out the likely effects of a wage subsidy in a model of LDC which systematically incorporates an Informal sector. It is seen that the effects of a wage subsidy in this model differ considerably from those derived in the Harris-Todaro-type frameworks. Also, the ranking policies to improve welfare is likely to be considerably different in this model compared to this in the Harris-Todaro-type models.
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Volume (Year): 25 (1998)
Issue (Month): 2 (May)
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