The Costs of Dualism

Jonathan Temple

Bristol Economics Discussion Papers from School of Economics, University of Bristol, UK

Abstract: This paper shows how to calibrate a two-sector general equilibrium model of production using a small number of parameter assumptions and readily available data. The framework is then used to analyze the costs of labor market dualism. The paper quantiÞes the effects of rural-urban wage differentials and urban unemployment on total output, wages and returns to capital, factor shares, and sectoral structure. One of the main Þndings is that labor market rigidities can have a major impact on the extent of industrialization.

Keywords: dualism; productivity; wage differentials; minimum wages (search for similar items in EconPapers)
JEL-codes: D61 O40 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2002-04
New Economics Papers: this item is included in nep-dev and nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: The costs of dualism (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:bri:uobdis:02/532

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