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The Labor Market and Economic Adjustment
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In this article, the authors examine the role of the labor market in the transmission process of adjustment policies in developing countries and examine the implications of wage inertia, nominal contracts, labor market segmentation, and impediments to labor mobility for stabilization policies.Abstract:
This paper examines the role of the labor market in the transmission process of adjustment policies in developing countries. It begins by reviewing the recent evidence regarding the functioning of these markets. It then studies the implications of wage inertia, nominal contracts, labor market segmentation, and impediments to labor mobility for stabilization policies. The effect of labor market reforms on economic flexibility and the channels through which labor market imperfections alter the effects of structural adjustment measures are discussed next. The last part of the paper identifies a variety of issues that may require further investigation, such as the link between changes in relative wages and the distributional effects of adjustment policies.read more
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Why Do More Open Economies Have Bigger Governments
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Why do More Open Economies Have Bigger Governments
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Economic reform and informal wage—a general equilibrium analysis
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Dual Economy Models: A Primer for Growth Economists
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Migration unemployment and development: a two-sector analysis.
Harris,Michael P. Todaro +1 more
TL;DR: In this paper, the authors examined why rural-urban labor migration persists and is even increasing in many developing nations despite the existence of positive marginal products in agriculture and significant levels of urban unemployment, and concluded that in the absence of wage flexibility an optimal policy would include both partial wage subsidies or direct government employment and measures to restrict free migration.
Book
The Migration of Labor
TL;DR: A relative deprivation approach to migration is proposed in this paper, where the economic performance of migrants and their remittances is analyzed in the context of planning with migration in a context of economic instability.
Journal ArticleDOI
Job Security Provisions and Employment
TL;DR: This article examined the effects of job security provisions on employment in European countries and found that the severance pay requirements reduce employment, and that new workers are less likely to be hired in a perfectly functioning market.
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Employment and Wage Effects of Trade Liberalization: The Case of Mexican Manufacturing
TL;DR: Revenga as discussed by the authors analyzes how Mexico's trade liberalization (1985-87) affected employment and wages in industry, focusing on how it affected average employment and earnings rather than on the link between trade and relative wages.