IDEAS home Printed from https://ideas.repec.org/p/ulp/sbbeta/2000-01.html
   My bibliography  Save this paper

Heterogeneous Workers, Dualism and Efficiency Wage

Author

Listed:
  • Francesco De PALMA

Abstract

We consider a segmented labor market characterized by a Shapiro-Stiglitz efficiency wage setting in both sectors. However, the primary sector and the secondary sector differ in the firing cost which induces a wage diffential. We suppose also a heterogeneous labor force characterized by the presence of > and > workers. Only controlled non-shirking workers of the secondary sector can enter in the primary one. This flow of these ones is assimilated to promoted workers. We show that involuntary unemployment emerges at the equilibrium because of efficiency wage setting in both sectors. We argue also that a reduction of the firing cost in the primary sector leads to a lower unemployment of both worker types and raises wage discrimination.

Suggested Citation

  • Francesco De PALMA, 2000. "Heterogeneous Workers, Dualism and Efficiency Wage," Working Papers of BETA 2000-01, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2000-01
    as

    Download full text from publisher

    File URL: http://beta.u-strasbg.fr/WP/2000/2000-01.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    labor turnover; efficiency wage; primary and secondary sectors;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ulp:sbbeta:2000-01. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/bestrfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.