CAPITAL IMMOBILITY, INFORMAL SECTOR AND URBAN UNEMPLOYMENT
GE, Growth, Math methods from University Library of Munich, Germany
We consider a three sector model of informal sector which assumes efficiency wage hypothesis and explains the simultaneous existence of informal sector and urban unemployment. We also study the effects of subsidy policies given to different sectors and the effects of change in capital stock on urban unemployment and domestic factor income.
Keywords: Capital immobility; informal sector; urban unemployment (search for similar items in EconPapers)
JEL-codes: C6 D5 D9 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpge:0511005
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