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Labour market, international trade, and unemployment in a less developed country

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Date
2011-08
Author
Mesa, Fernando
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Citation
URI
https://ideas.repec.org/p/col/000092/008908.html...

Summary

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 áexible wages, while the other two sectors are tradable, export and import sectors. The model imposes a binding minimum wage over the unskilled labour and e¢ cient wage distortions on the skilled labour. Comparative statics is driven to analyze the e§ects 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.

Keyword

Trade reforms ; Trade and labor markets interactions ; Demand for labor ;

Subject

Economía laboral ;

Source link

https://ideas.repec.org/p/col/000092/008908.html...

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