Labour market, international trade, and unemployment in a less developed country

Fernando Mesa ()

No 8908, Documentos de Trabajo from Universidad del Rosario

Abstract: This paper constructs a trade general equilibrium model for a less developed country with three sectors. One is the informal and un-tradable sector characterized by flexible wages, while the other two sectors are tradable, export and import sectors. The model imposes a binding minimum wage over the unskilled labour and efficient wage distortions on the skilled labour. Comparative statics is driven to analyze the effects on the labour market as consequence of opening the economy, raising the minimum wage and the introduction of an augmenting productivity in the export sector.

Keywords: Trade reforms; Trade and labor markets interactions, Demand for labor. (search for similar items in EconPapers)
JEL-codes: F02 F16 J23 (search for similar items in EconPapers)
Pages: 23
Date: 2011-08-23
New Economics Papers: this item is included in nep-int, nep-iue, nep-lab and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:col:000092:008908

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