Imperfect Labor Mobility and Unemployment in a Dual Economy*

Yabuuchi, Shigemi

doi:10.1111/j.1467-9396.2006.00650.x

Cited by 5 publications

(3 citation statements)

References 25 publications

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“…A structural feature of developing economies that has attracted considerable attention in the neoclassical literature but has not been widely considered in the context of IIT models is the presence of a sector‐specific minimum wage. Recent contributions to this topic include Beladi and Chao (2000), Marjit and Beladi (2003), Wei and Yabuuchi (2006), Beladi et al (2008) Gilbert and Oladi (2009), which extend the classic Harris and Todaro (1970) literature in various directions. In the Harris and Todaro framework we observe the persistence of rural–urban migration in the presence of open urban unemployment.…”

Section: Introductionmentioning

confidence: 87%

Monopolistic Competition and North–South Trade

Oladi

Gilbert

2011

Rev International Economics

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This paper examines the consequences of opening to international trade for a developing economy with open urban unemployment and rural-urban migration, where the urban sector is monopolistically competitive. It is shown that there exists a threshold level of urbanization prior to which increases in product variety will be reflected in increased urban unemployment, that opening to intra-industry trade with a high-wage economy (i.e. North-South trade) will reduce the rate of urban unemployment by a greater amount than intra-industry trade with a similar economy, and that trade intervention in the South may lower welfare by reducing varieties produced in the North.

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Section: Introductionmentioning

confidence: 87%

Monopolistic Competition and North–South Trade

Oladi

Gilbert

2011

Rev International Economics

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“…Early research considers this issue from an international trade perspective [3]. Because this issue is more severe in developing countries than in developed countries, recent literature analyzes it in the context of developing countries with a dual economy [5][6][7][8][9][10][11][12]. Nevertheless, to the best of our knowledge, the impact of factor market distortion on agricultural productivity in the presence of the APS sector is largely ignored.…”

Section: Literature Reviewmentioning

confidence: 99%

Factor Market Distortions, Agricultural Producer Service and Agricultural Productivity

Gao

Wang

2022

AJEBA

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Small-scale agriculture prevails in developing countries and adds difficulties for the agricultural sector to use modern inputs from the urban region. In practice, raising division among rural area and the development of agricultural producer service sector could solve this problem without transferring the right to management of rural land. This paper employs the general equilibrium approach to investigate how the mitigation of labor and capital distortion influences rural development and agricultural productivity with the existence of the agricultural producer service sector. In the model, the capital could not move into agricultural production directly, instead, capital entries into the agricultural producer service sector and indirectly serves the agricultural production. Our model shows that the mitigation of labor market promotes rural labor migration as well the capital mobility from urban to rural, and expands agricultural output and raises agricultural productivity. However, a reduction of capital market distortion fails to achieve its goal and reduces agricultural output and productivity.

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“…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. Both of these treatments are characterised by imperfect labour mobility and urban unemployment 1 .…”

Section: Introductionmentioning

confidence: 99%

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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Imperfect Labor Mobility and Unemployment in a Dual Economy*

Cited by 5 publications

References 25 publications

Monopolistic Competition and North–South Trade

Monopolistic Competition and North–South Trade

Factor Market Distortions, Agricultural Producer Service and Agricultural Productivity

International Trade and Unemployment in Less Developed Countries

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