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Labour Informality, Selective Migration, and Productivity in General Equilibrium

Listed author(s):
  • Huikang Ying

    ()

This paper studies the interactions between urban labour informality and selective migration, and explores the consequences of productivity changes at both sectoral and individual levels. It proposes a general equilibrium model with heterogeneous workers to characterize the sizable agriculture sector and urban informality in developing economies, and discusses implications for wages and inequality. The model links the size of the urban informal sector to the distributions of individual productivity endowments. The finding suggests that improving average individual skills is an efficient way to alleviate urban underemployment. Equilibrium responses also indicate that changes in labour markets have only modest effects on wages and inequality.

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File URL: http://www.efm.bris.ac.uk/economics/working_papers/pdffiles/dp15653.pdf
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Paper provided by Department of Economics, University of Bristol, UK in its series Bristol Economics Discussion Papers with number 15/653.

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Length: 35 pages
Date of creation: 04 Feb 2015
Handle: RePEc:bri:uobdis:15/653
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  6. Marcouiller, Douglas & Ruiz de Castilla, Veronica & Woodruff, Christopher, 1997. "Formal Measures of the Informal-Sector Wage Gap in Mexico, El Salvador, and Peru," Economic Development and Cultural Change, University of Chicago Press, vol. 45(2), pages 367-392, January.
  7. Mathan Satchi & Jonathan Temple, 2009. "Labor Markets and Productivity in Developing Countries," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 12(1), pages 183-204, January.
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  24. Jonathan Temple & Huikang Ying, 2014. "Life During Structural Transformation," Bristol Economics Discussion Papers 14/650, Department of Economics, University of Bristol, UK, revised 08 Dec 2014.
  25. Huikang Ying, 2014. "Growth and Structural Change in a Dynamic Lagakos-Waugh Model," Bristol Economics Discussion Papers 14/639, Department of Economics, University of Bristol, UK.
  26. Michael Pries, 2008. "Worker Heterogeneity and Labor Market Volatility in Matching Models," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(3), pages 664-678, July.
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  30. repec:dgr:rugggd:gd-136 is not listed on IDEAS
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