Imperfect Labor Mobility and Unemployment in a Dual Economy*

Gu Wei and Shigemi Yabuuchi

Review of International Economics, 2006, vol. 14, issue 4, 698-708

Abstract: This paper examines the implications of imperfect labor mobility and unemployment in developing countries. We analyze the effects of wage subsidy policies, factor growth, and the change in labor mobility on unemployment and national income in an economy that is characterized by the existence of both imperfect labor mobility and urban unemployment.

Date: 2006
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