Sarbajit Chaudhuri

Bio: Sarbajit Chaudhuri is an academic researcher from University of Calcutta. The author has contributed to research in topics: Unemployment & Informal sector. The author has an hindex of 23, co-authored 193 publications receiving 1971 citations. Previous affiliations of Sarbajit Chaudhuri include Bagnan College & Hooghly Mohsin College.

Can International Factor Mobility Lessen Wage Inequality in a Dual Economy

Abstract: We introduce international labor mobility in a three-sector general equilibrium model with rural-urban migration. We demonstrate that under some reasonable conditions an inflow of foreign skilled labor (capital) can reduce skilled-unskilled wage inequality.

Economic liberalization and wage inequality in the presence of labour market imperfection

Abstract: This paper is purported to analyze the consequences of liberalized economic policies on the skilled–unskilled wage inequality in the developing countries using a three sector general equilibrium model reasonable for at least a few developing economies. The analysis of the paper has found that the wage inequality rises unambiguously due to a reduction of import tariff from the low-skill manufacturing sector. However, an inflow of foreign capital produces a favourable effect on the wage inequality under a reasonable factor intensity condition. Interestingly, contrary to the common wisdom, a policy of labour market reform may raise the competitive unskilled wage and improve wage inequality under reasonable condition.

International migration of labour and skilled–unskilled wage inequality in a developing economy

Abstract: The paper develops a three sector general equilibrium structure with diverse trade pattern and imperfection in the unskilled labour market to analyze the consequences of international mobility of skilled and unskilled labour on the skilled–unskilled wage inequality in the developing economies. It shows that the effects of international migration of labour on the wage inequity crucially depend on both the relative capital intensities between the low-skill and high-skill sectors and the institutional nature of the markets for unskilled labour. The analysis finds that an emigration (immigration) of either type of labour is likely to produce a favourable (an unfavourable) effect on the wage inequality. In particular, the result of emigration (immigration) of skilled labour on the relative wage inequality is counterintuitive. These results have important policy implications for an overpopulated developing country like India.

Can International Factor Mobility Reduce Wage Inequality in a Dual Economy

Abstract: We introduce international labor mobility in a three-sector general equilibrium model with rural-urban migration. We demonstrate that under some reasonable conditions an inflow of foreign skilled labor (capital) can reduce skilled-unskilled wage inequality.

How and how far to liberalize a developing economy with informal sector and factor market distortions

Abstract: Whether a liberalizing developing economy should implement the entire WTO-prescribed package, and to what extent this is expedient, are two important questions, especially because the available empirical evidence suggests that developing countries have been facing substantial adjustment costs in their endeavour to implement trade and investment reform. The present paper makes a humble effort to provide answers to the above questions in terms of a three-sector general equilibrium model with informal sectors. Welfare implications of three liberalization policies: inflow of foreign capital, tariff reduction and labour market reform, have first been analysed in a full-employment framework. Later, the paper has been extended into a Harris – Todaro framework with an urban informal sector and capital market distortion. We have shown that welfare consequences of a tariff reform and/or a policy of deregulating the labour market crucially depend on the presence and magnitude of foreign capital in the economy. It is...

The Institutional Economics of Corruption and Reform: Theory, Evidence and Policy

Abstract: Corruption has been a feature of public institutions for centuries yet only relatively recently has it been made the subject of sustained scientific analysis. Lambsdorff shows how insights from institutional economics can be used to develop a better understanding of why corruption occurs and the best policies to combat it. He argues that rather than being deterred by penalties, corrupt actors are more influenced by other factors such as the opportunism of their criminal counterparts and the danger of acquiring an unreliable reputation. This suggests a novel strategy for fighting corruption similar to the invisible hand that governs competitive markets. This strategy - the 'invisible foot' - shows that the unreliability of corrupt counterparts induces honesty and good governance even in the absence of good intentions. Combining theoretical research with state-of-the-art empirical investigations, this book will be an invaluable resource for researchers and policy-makers concerned with anti-corruption reform.

Unemployment Effects of Minimum Wages

Abstract: Empirical investigation of employment effects of minimum wage legislation is a subject of continuing interest, judging by a growing number of studies The older studies were concerned mainly with changes in employment in low-wage industries In the more recent work, attention has shifted to effects on unemployment in low-wage demographic groups, such as teenagers Despite the statistical difference there is no apparent recognition of a conceptual as well as substantive distinction between minimum wage effects on employment and those on unemployment The purpose of this paper is to explore the analytical distinction between employment and unemployment effects in the hope of providing some understanding of the observations Though related empirical work is far from being definitive the findings appear to be informative

Globalization and the gender wage gap

Abstract: There are several theoretical reasons why globalization will have a narrowing as well as widening effect on the gender wage gap, but little is known about the actual impact, except for a number of country studies. The author provides a cross-country study of the impact of globalization on the occupational gender wage gap, based on the rarely used but most far-ranging survey of wages around the world, the International Labour Organization's October Inquiry. This annual survey was started in 1924 and contains a wealth of information on wages and the gender wage gap. For the period 1983-99, there is information on the gender wage gap in 161 narrowly defined occupations in more than 80 countries around the world. The author finds the following: (i) The occupational gender wage gap appears to be narrowing with increases inGDP per capita; (ii) There is a significantly narrowing impact of trade and foreign direct investment (FDI) net inflows on the occupational gender wage gap for low-skill occupations, both in poorer and richer countries, and for high-skill occupations in richer countries; (iii) There is no evidence of a narrowing impact of trade, but there is evidence of a widening impact of FDI net inflows on the high-skill occupational gender wage gap in poorer countries; (iv) Wage-setting institutions have a strong impact on the occupational gender wage gap in richer countries.

Pollution, shadow economy and corruption: Theory and evidence ☆

Abstract: We study how the shadow economy affects pollution and how this effect depends on corruption levels in public administration. Production in the shadow economy allows firms to avoid environmental regulation policies; a large informal sector may be accompanied by higher pollution levels. Our theoretical model predicts that controlling the levels of corruption can limit the effect of the shadow economy on pollution. We use panel data covering the period from 1999 to 2005 in more than 100 countries to test this theoretical prediction. Our estimates confirm that the relationship between the shadow economy and the levels of pollution are dependent on the levels of corruption. Our results hold when we control for the effects of other determinants of pollution, time varying common shocks, country-fixed effects and various additional covariates.