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On-The-Job Search, Urban Informal Sector And Development Policies — A General Equilibrium Analysis

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  • TITAS KUMAR BANDOPADHYAY

    (Bagnan College, Bagnan, Howrah, West Bengal, India)

Abstract

The purpose of this paper is to examine Field's (1989) proposition in a multisector general equilibrium model with imperfect capital mobility. The effects of different fiscal policies on the equilibrium rate of urban unemployment are also examined. The main findings are (i) more efficient on-the-job search from the rural sector raises equilibrium urban unemployment rate whereas (ii) increased job search efficiency from the urban informal sector lowers this rate. Aditionally, (iii) urban price subsidy policy lowers the equilibrium urban unemployment rate, and (iv) rural subsidy policy raises this rate.

Suggested Citation

  • Titas Kumar Bandopadhyay, 2010. "On-The-Job Search, Urban Informal Sector And Development Policies — A General Equilibrium Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 55(02), pages 401-410.
  • Handle: RePEc:wsi:serxxx:v:55:y:2010:i:02:n:s0217590810003766
    DOI: 10.1142/S0217590810003766
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    More about this item

    Keywords

    On-the-job search; urban informal sector; development policies; D5; H2; J64;
    All these keywords.

    JEL classification:

    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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