The Mechanics of Dualistic Models: "Comparable" Structures and Comparative Statics Results

Ana Paula Martins

Journal of Economics and Political Economy, 2014, vol. 1, issue 2, 150-185

Abstract: In this paper we present and confront the main comparative static results - effects of labor supply, demand and institutional wage movements - of the (a) basic two-sector model in six different scenarios: free market; partial (one-sector) coverage with perfect intersector mobility; partial (one-sector) coverage with imperfect mobility (Harris-Todaro); multiple (two-sector) coverage with imperfect mobility (Bhagwati-Hamada); partial (one-sector) coverage with affiliation restrictions in the covered sector; partial (one-sector) coverage with limited employment generation ability in the traditional uncovered sector.

Date: 2014
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