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Optimal Urban Employment Policies: Notes on Calvo and Quibria

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  • Chau, Nancy H
  • Khan, M Ali

Abstract

We show that Quibria's insightful observation on the efficacy of urban policy in a model with an urban trade union and an urban informal sector holds, but with a revenue-neutral employment tax-subsidy combination levied on the urban employer. We also draw the relevance of the generalized Harris-Todaro model in providing intuition for the validity of this surprising result.

Suggested Citation

  • Chau, Nancy H & Khan, M Ali, 2001. "Optimal Urban Employment Policies: Notes on Calvo and Quibria," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(2), pages 557-568, May.
  • Handle: RePEc:ier:iecrev:v:42:y:2001:i:2:p:557-68
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    Cited by:

    1. Raghbendra Jha & John Whalley, 2003. "Migration and Pollution," Departmental Working Papers 2003-07, The Australian National University, Arndt-Corden Department of Economics.
    2. Khan, M. Ali Khan, 2007. "The Harris-Todaro Hypothesis," MPRA Paper 2201, University Library of Munich, Germany.
    3. Sarbajit Chaudhuri, 2016. "Trade Unionism and Welfare Consequences of Trade and Investment Reforms in A Developing Economy," Metroeconomica, Wiley Blackwell, vol. 67(1), pages 152-171, February.
    4. repec:bla:worlde:v:40:y:2017:i:3:p:598-611 is not listed on IDEAS

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