Pollution control under an urban binding minimum wage

Hamid Beladi and Ralph Frasca ()
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Ralph Frasca: Department of Economics and Finance, University of Dayton, Dayton, OH 45469, USA

The Annals of Regional Science, 1999, vol. 33, issue 4, 523-533

Abstract: In this paper, by using a generalized Harris-Todaro model that incorporates an urban non-polluting sector, and supposes a dual economy inherent in an LDC, we examine the backward incidence of pollution control on some key variables of interest. Given a relatively capital intensive polluting sector, stricter pollution controls may result in a reduction in unemployment, an increase in national income and migration from the agricultural sector. The results from our model differ from that of a previous model that demonstrated a reverse flow of labor to the agricultural sector from stricter pollution controls.

Date: 1999-11-25
Note: Received: December 1997/Accepted: June 1998
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