The costs of dualism

Jonathan Temple

No 201, Royal Economic Society Annual Conference 2003 from Royal Economic Society

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 quantifies 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 findings 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)
Date: 2003-06-04
New Economics Papers: this item is included in nep-dev
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Working Paper: The Costs of Dualism (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:ecj:ac2003:201

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