A Theory of Dual Labor Markets with Application to Industrial Policy,Discrimination, and Keynesian Unemployment
Jeremy I Bulow and
Lawrence Summers
Journal of Labor Economics, 1986, vol. 4, issue 3, 376-414
Abstract:
This paper develops a model of dual labor markets based on employers' need to motivate workers. In order to elicit effort from their workers, employers may find it optimal to pay more than the going wage. This changes fundamentally the character of labor markets. The model is applied to a wide range of labor market phenomena. It provides a coherent framework for understanding the claims of industrial policy advocates. It also can provide the basis for a theory of occupational segregation and discrimination that will not be eroded by market forces. Finally, the model provides the basis for a theory of involuntary unemployment. Copyright 1986 by University of Chicago Press.
Date: 1986
References: Add references at CitEc
Citations: View citations in EconPapers (334)
Downloads: (external link)
http://dx.doi.org/10.1086/298116 full text (application/pdf)
Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JOLE for details.
Related works:
Working Paper: A Theory of Dual Labor Markets with Application to Industrial Policy, Discrimination and Keynesian Unemployment (1985) 
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:ucp:jlabec:v:4:y:1986:i:3:p:376-414
Access Statistics for this article
More articles in Journal of Labor Economics from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().