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Pollution control under an urban binding minimum wage

Author

Listed:
  • Hamid Beladi

    () (Department of Economics and Finance, University of Dayton, Dayton, OH 45469, USA)

  • Ralph Frasca

    () (Department of Economics and Finance, University of Dayton, Dayton, OH 45469, USA)

Abstract

In this paper, by using a generalized Harris-Todaro model that incorporates an urban non-polluting sector, and supposes a dual economy inherent in an LDC, we examine the backward incidence of pollution control on some key variables of interest. Given a relatively capital intensive polluting sector, stricter pollution controls may result in a reduction in unemployment, an increase in national income and migration from the agricultural sector. The results from our model differ from that of a previous model that demonstrated a reverse flow of labor to the agricultural sector from stricter pollution controls.

Suggested Citation

  • Hamid Beladi & Ralph Frasca, 1999. "Pollution control under an urban binding minimum wage," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 33(4), pages 523-533.
  • Handle: RePEc:spr:anresc:v:33:y:1999:i:4:p:523-533 Note: Received: December 1997/Accepted: June 1998
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    References listed on IDEAS

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    1. Aguirre, Inaki & Paz Espinosa, Maria, 2004. "Product differentiation with consumer arbitrage," International Journal of Industrial Organization, Elsevier, pages 219-239.
    2. Layson, Stephen K, 1994. "Market Opening under Third-Degree Price Discrimination," Journal of Industrial Economics, Wiley Blackwell, vol. 42(3), pages 335-340, September.
    3. Shih, Jun-ji & Mai, Chao-cheng & Liu, Jung-chao, 1988. "A General Analysis of the Output Effect under Third-Degree Price Discrimination," Economic Journal, Royal Economic Society, vol. 98(389), pages 149-158, March.
    4. ANDERSON, Simon P. & de PALMA, André & THISSE, Jacques-François, "undated". "Social surplus and profitability under different spatial pricing policies," CORE Discussion Papers RP 1009, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    Cited by:

    1. Li, Xiaochun & Xu, Yuanting & Wang, Dianshuang, 2014. "Environment and labor movement of skilled labor and unskilled labor between sectors," Economic Modelling, Elsevier, vol. 38(C), pages 367-371.
    2. Leonard F.S. Wang & Ya-Chin Wang & Lihong Zhao, 2012. "The incidence of environmental regulation in a developing economy with sector-specific unemployment: a note," Economics and Business Letters, Oviedo University Press, vol. 1(1), pages 3-11.
    3. Stefan Csordas, 2013. "The general equilibrium effects of energy efficiency gains in developing countries with urban unemployment," Economics Bulletin, AccessEcon, vol. 33(3), pages 1969-1977.
    4. Pi, Jiancai & Zhang, Pengqing, 2017. "Foreign capital, pollution control, and wage inequality in developing countries," International Review of Economics & Finance, Elsevier, vol. 48(C), pages 280-288.
    5. Chao, Chi-Chur & Laffargue, Jean-Pierre & Sgro, Pasquale M., 2012. "Environmental control, wage inequality and national welfare in a tourism economy," International Review of Economics & Finance, Elsevier, vol. 22(1), pages 201-207.

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