Labor Market Competitiveness and Poverty

Hideaki Goto

No 51159, Working Papers from Cornell University, Department of Applied Economics and Management

Abstract: How does labor market competitiveness frame the impact of greater labor productivity and lower inequality on poverty? Specifically, does greater competitiveness increase the impact of higher labor productivity and lower inequality on poverty reduction? In a simple model, we show that there is complementarity between competitiveness and productivity – the greater is one, the larger is the impact of the other. This suggests that improving labor market competitiveness is worthwhile not only for its own sake, but because it improves the transmission mechanism from productivity increases to poverty reduction. We also derive precise conditions under which there is a similar complementarity between equality and competitiveness in poverty reduction.

Keywords: Food Security and Poverty; International Development; Political Economy (search for similar items in EconPapers)
Pages: 19
Date: 2008-09-28
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/51159/files/WP%20Goto%202008-20.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:cudawp:51159

DOI: 10.22004/ag.econ.51159

Access Statistics for this paper

More papers in Working Papers from Cornell University, Department of Applied Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().