Imperfect Labor Mobility and Unemployment in LDCs

Parai, Amar K.; Beladi, Hamid

doi:10.2307/1061046

Cited by 16 publications

(7 citation statements)

References 9 publications

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“…Among other reasons they could earn more, or at least hope to earn more; also, they value self-employment and the relative independence. 5 Casas [4] derives this type of labour supply from a CES utility function.…”

Section: Reduced Modelmentioning

confidence: 99%

“…With two different rates of pay earned by unskilled people in two different segments of the labour market, the model includes an unemployment rate attributed to both imperfect labour mobility and a sector-specific sticky wage. Some authors, like Parai and Beladi [5], explain unemployment rates through the manufacturing sticky wages, of the Harris-Todaro variety. Wei and Yabuuchi [6] additionally examine the implications of wage subsidy policy and factor production growth on the rate of unemployment, also using the Harris-Todaro model.…”

Section: Introductionmentioning

confidence: 99%

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International Trade and Unemployment in Less Developed Countries

Mesa¹

2012

TEL

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The main interest focus of this paper is the relation between international trade and the labour market, with an emphasis on the unemployment rate, and the allocation of workers among sectors. A general trade equilibrium model with three sectors is constructed for a less developed country. An informal and un-tradable sector is characterised by flexible wages, while the other two sectors are tradable, export and import sectors. The model imposes a binding minimum wage on unskilled labour and wage distortions on skilled labour. Comparative statics are used to analyse the effects on the labour market of an open economy, a rise in the minimum wage and a positive productivity shock in the export sector.

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Section: Reduced Modelmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

International Trade and Unemployment in Less Developed Countries

Mesa¹

2012

TEL

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“…Other writers, such as Mussa (1982), Feenstra and Lewis (1994) and LoÂ pez and Schiff (1998) have used very general functions generating imperfect intersectoral transformation of labour, justifying these by largely unspecified barriers to relocation which are assumed to be distributed across individuals. This very general approach to the modelling of relocation costs has been taken even further by Hill and Mendez (1983), Casas (1984), Parai and Yu (1991), Beladi and Parai (1993) and Parai and Beladi (1997) who introduce imperfect factor mobility simply by assuming different elasticities of labour supply to different sectors, with no explicit attempt to model their economic basis. The model of Epstein et al (1999), in which income is differentially distributed across workers through political patronage, is also an example, although the paper was concerned with international migration.…”

Section: Position-dependent Costs With Non-marketable Labour Market Pmentioning

confidence: 99%

Impeerfect Intersectoral Labour Mobility and Welfare in International Trade

Leger

Gaisford

2001

Journal of Economic Surveys

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This paper sets out a general`costs-of-employment' model by which to analyse the impediments to relocation faced by workers who must choose between industrial sectors in response to a terms of trade shock. Different types of employment cost generate different types of relocation cost. The theoretical literature on intersectoral labour relocation in international trade models is reviewed in the light of this model with various special cases analysed in detail. Special attention is given to the comparison between equilibrium and socially efficient patterns of migration. Different specifications of relocation costs lead to very different welfare effects and policy prescriptions.

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“…Most literature, however, assumes labor to be fully employed though the movement between sectors is sluggish. An exception is Parai and Beladi (1997) who extend the Casas model by incorporating unemployment à la Harris and Todaro (1970), and discussed some issues on growth and gains from trade. Their arguments are further elaborated by Gilbert and Mikic (1998) and Parai and Beladi (1998).…”

Section: Introductionmentioning

confidence: 99%

Imperfect Labor Mobility and Unemployment in a Dual Economy*

Yabuuchi

2006

Rev International Economics

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This paper examines the implications of imperfect labor mobility and unemployment in developing countries. We analyze the effects of wage subsidy policies, factor growth, and the change in labor mobility on unemployment and national income in an economy that is characterized by the existence of both imperfect labor mobility and urban unemployment. Copyright � 2006 The Authors; Journal compilation � 2006 Blackwell Publishing Ltd.

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Imperfect Labor Mobility and Unemployment in LDCs

Cited by 16 publications

References 9 publications

International Trade and Unemployment in Less Developed Countries

International Trade and Unemployment in Less Developed Countries

Impeerfect Intersectoral Labour Mobility and Welfare in International Trade

Imperfect Labor Mobility and Unemployment in a Dual Economy*

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