Wage and Fertility Gaps in Dual Economies

Sibabrata Das, Alex Mourmouras and Peter Rangazas
Additional contact information
Sibabrata Das: International Monetary Fund
Alex Mourmouras: International Monetary Fund

Chapter 7 in Economic Growth and Development, 2018, pp 191-227 from Springer

Abstract: Abstract This chapter begins our analysis of two sector models where markets may be missing. Here we focus on the fact that wages are lower and fertility is higher in the traditional sector than in the modern sector of economies. This has important consequences for economic growth for two reasons. First, as suggested by growth fact G11, the wage gap indicates the allocation of labor may be inefficient—the movement of labor from the traditional sector to the modern sector should raise average labor productivity. Second, if fertility falls as households move from the traditional sector to the modern sector, then population growth will decline making it easier to increase physical capital per worker.

Date: 2018
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Chapter: Wage and Fertility Gaps in Dual Economies (2015)
Journal Article: Wage and Fertility Gaps in Dual Economies (2013)
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:spr:sptchp:978-3-319-89755-4_7

Ordering information: This item can be ordered from
http://www.springer.com/9783319897554

DOI: 10.1007/978-3-319-89755-4_7

Access Statistics for this chapter

More chapters in Springer Texts in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().