Labour market, international trade, and unemployment in a less developed country
This paper constructs a trade general equilibrium model for a less developed country with three sectors. One is the informal and un-tradable sector characterized by flexible wages, while the other two sectors are tradable, export and import sectors. The model imposes a binding minimum wage over the unskilled labour and efficient wage distortions on the skilled labour. Comparative statics is driven to analyze the effects on the labour market as consequence of opening the economy, raising the minimum wage and the introduction of an augmenting productivity in the export sector.
|Date of creation:||23 Aug 2011|
|Date of revision:|
|Contact details of provider:|| |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chaudhuri, Sarbajit & Yabuuchi, Shigemi, 2007.
"Economic liberalization and wage inequality in the presence of labour market imperfection,"
International Review of Economics & Finance,
Elsevier, vol. 16(4), pages 592-603.
- Sarbajit Chaudhuri & Shigemi Yabuuchi, 2005. "Economic Liberalization And Wage Inequality In The Presence Of Labour Market Imperfection," International Trade 0510008, EconWPA.
- Pushan Dutt & Devashish Mitra & Priya Ranjan, 2007.
"International Trade and Unemployment: Theory and Cross-National Evidence,"
070808, University of California-Irvine, Department of Economics.
- Dutt, Pushan & Mitra, Devashish & Ranjan, Priya, 2009. "International trade and unemployment: Theory and cross-national evidence," Journal of International Economics, Elsevier, vol. 78(1), pages 32-44, June.
- Koujianou Goldberg, Pinelopi & Pavcnik, Nina, 2003.
"The response of the informal sector to trade liberalization,"
Journal of Development Economics,
Elsevier, vol. 72(2), pages 463-496, December.
- Pinelopi K. Goldberg & Nina Pavcnik, 2003. "The Response of the Informal Sector to Trade Liberalization," NBER Working Papers 9443, National Bureau of Economic Research, Inc.
- Goldberg, Pinelopi Koujianou & Pavcnik, Nina, 2003. "The Response of the Informal Sector to Trade Liberalization," CEPR Discussion Papers 3874, C.E.P.R. Discussion Papers.
- Carl Davidson & Steven J. Matusz, 2005.
"Trade and Turnover: Theory and Evidence,"
Review of International Economics,
Wiley Blackwell, vol. 13(5), pages 861-880, November.
- Stiglitz, Joseph E, 1974. "Alternative Theories of Wage Determination and Unemployment in LDC'S: The Labor Turnover Model," The Quarterly Journal of Economics, MIT Press, vol. 88(2), pages 194-227, May.
- Goldberg, Pinelopi Koujianou & Pavcnik, Nina, 2005.
"Trade, wages, and the political economy of trade protection: evidence from the Colombian trade reforms,"
Journal of International Economics,
Elsevier, vol. 66(1), pages 75-105, May.
- Goldberg, Pinelopi Koujianou & Pavcnik, Nina, 2003. "Trade, Wages and the Political Economy of Trade Protection: Evidence from the Colombian Trade Reforms," CEPR Discussion Papers 3877, C.E.P.R. Discussion Papers.
- Marjit, Sugata, 2003. "Economic reform and informal wage--a general equilibrium analysis," Journal of Development Economics, Elsevier, vol. 72(1), pages 371-378, October.
- F. R. Casas, 1984. "Imperfect Factor Mobility: A Generalization and Synthesis of Two-Sector Models of International Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 17(4), pages 747-61, November.
When requesting a correction, please mention this item's handle: RePEc:col:000092:008908. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paola Villalobos)
If references are entirely missing, you can add them using this form.