Pollution control under an urban binding minimum wage
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.
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Volume (Year): 33 (1999)
Issue (Month): 4 ()
|Note:||Received: December 1997/Accepted: June 1998|
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