Sector Specific Wage Rigidity and Factor Accumulation

Hamid Beladi

The Economic Record, 1990, vol. 66, issue 1, 32-36

Abstract: Economic expansion resulting from factor accumulation is introduced in the mobile capital and small open economy version of the Harris‐Todaro model. Among other things, it is shown that economy expansion leads to normal effects on urban unemployment if land is introduced as a scarce input in the agricultural sector. However, capital accumulation and labour growth have indeterminate effects on the absolute level of urban unemployment.

Date: 1990
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https://doi.org/10.1111/j.1475-4932.1990.tb02083.x

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