Capital Mobility and Informal Wage in a Small Economy—Two Examples

Sugata Marjit, Saibal Kar () and Punyabrata Sarkar
Additional contact information
Punyabrata Sarkar: Calcutta Metropolitan Development Authority, Kolkata, punyabratasarkar@hotmail.com

South Asia Economic Journal, 2004, vol. 5, issue 2, 261-266

Abstract: We conduct two policy experiments in a general equilibrium framework with an informal sector. The first deals with a liberal trade policy and the second with a decline in the unionized wage rate. In both cases, informal workers gain if capital moves between the formal and the informal segments and lose if it does not. These results are independent of the factor intensity rankings of the sectors. Both of these results have important policy implications.

Keywords: Informal Wage; Capital Mobility; Trade Reform; Labour Union; Economic Welfare (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/139156140400500204 (text/html)

Related works:
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:sae:soueco:v:5:y:2004:i:2:p:261-266

DOI: 10.1177/139156140400500204

Access Statistics for this article

More articles in South Asia Economic Journal from Institute of Policy Studies of Sri Lanka
Bibliographic data for series maintained by SAGE Publications ().