Optimal Urban Employment Policies: Notes on Calvo and Quibria

Nancy Chau and M. Khan
Authors registered in the RePEc Author Service: M.G.Quibria ()

International Economic Review, 2001, vol. 42, issue 2, 557-68

Abstract: We show that Quibria's insightful observation on the efficacy of urban policy in a model with an urban trade union and an urban informal sector holds, but with a revenue-neutral employment tax-subsidy combination levied on the urban employer. We also draw the relevance of the generalized Harris-Todaro model in providing intuition for the validity of this surprising result.

Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:ier:iecrev:v:42:y:2001:i:2:p:557-68

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