ON-THE-JOB SEARCH, URBAN INFORMAL SECTOR AND DEVELOPMENT POLICIES — A GENERAL EQUILIBRIUM ANALYSIS

2010 ◽  
Vol 55 (02) ◽  
pp. 401-410
Author(s):  
TITAS KUMAR BANDOPADHYAY
Keyword(s):  
General Equilibrium ◽  
Informal Sector ◽  
Unemployment Rate ◽  
Job Search ◽  
Capital Mobility ◽  
Equilibrium Analysis ◽  
Subsidy Policy ◽  
Urban Unemployment ◽  
Price Subsidy ◽  
Urban Informal Sector

The purpose of this paper is to examine Field's (1989) proposition in a multisector general equilibrium model with imperfect capital mobility. The effects of different fiscal policies on the equilibrium rate of urban unemployment are also examined. The main findings are (i) more efficient on-the-job search from the rural sector raises equilibrium urban unemployment rate whereas (ii) increased job search efficiency from the urban informal sector lowers this rate. Aditionally, (iii) urban price subsidy policy lowers the equilibrium urban unemployment rate, and (iv) rural subsidy policy raises this rate.

scholarly journals Welfare Analysis in an Extended Harris-Todaro Model: An Application of the Atkinson Theorem

2017 ◽  
Vol 17 (1) ◽  
Author(s):  
Hautahi Kingi
Keyword(s):  
Income Distribution ◽  
Social Welfare ◽  
Informal Sector ◽  
Job Search ◽  
Welfare Analysis ◽  
Welfare Effects ◽  
Direct Application ◽  
Modern Sector ◽  
Schur Concave ◽  
Urban Informal Sector

AbstractI analyze the welfare effects of a policy of modern sector enlargement (MSENL), and a policy of increasing the efficiency of on-the-job search from the urban informal sector (IEOS) in a generalized Harris-Todaro model. I show that MSENL causes a Lorenz worsening of the income distribution and IEOS causes a Lorenz improvement. In a rare direct application of the Atkinson theorem, I conclude that MSENL decreases social welfare and IEOS increases social welfare for all anonymous, increasing and Schur-concave social welfare functions.

scholarly journals Economic Impact of Wildlife-Associated Recreation Expenditures in the Southeast United States: A General Equilibrium Analysis

2012 ◽  
Vol 44 (1) ◽  
pp. 63-82 ◽  
Author(s):  
Anwar Hussain ◽  
Ian A. Munn ◽  
David W. Holland ◽  
James B. Armstrong ◽  
Stan R. Spurlock
Keyword(s):  
United States ◽  
General Equilibrium ◽  
Economic Impact ◽  
Capital Mobility ◽  
Regional Economy ◽  
Value Added ◽  
Equilibrium Analysis ◽  
Southeast United States ◽  
General Equilibrium Analysis ◽  
Regional Factor

The economic impact of wildlife-associated recreation in the Southeast United States was evaluated using a general equilibrium model. Exogenous demand shocks to the regional economy were based on estimates of expenditures by wildlife recreationists on hunting, fishing, and wildlife watching activities. Counterfactual simulations were carried out, making alternative assumptions about labor and capital mobility and their supply. Without wildlife-associated recreation expenditures, regional employment would have been smaller by up to 783 thousand jobs, and value added would have been $22 to $48 billion less. These findings underscore the significance of regional factor market conditions in economic impact and general equilibrium analysis.

Investment and wage gap in India: a general equilibrium analysis

2018 ◽  
Vol 11 (2) ◽  
pp. 107-135 ◽  
Author(s):  
Subhasankar Chattopadhyay
Keyword(s):  
General Equilibrium ◽  
Informal Sector ◽  
Developing Economies ◽  
Wage Gap ◽  
Equilibrium Analysis ◽  
Formal Sector ◽  
Content Type ◽  
Development Literature ◽  
Capital Intensive ◽  
Specific Capital

Purpose This paper aims to theoretically find out whether investments could close the formal-informal wage gap in India. Design/methodology/approach The paper builds a general equilibrium model of a developing economy with a large informal sector and a capital-intensive formal sector with sector-specific capital and incorporates endogenous demand. Findings With homothetic preferences, a small initial wage premium and elastic relative demand, investment in the formal sector is likely to close the wage gap, but the gap persists with non-homothetic preferences. However, investment in the informal sector is unlikely to close the wage gap with either type of preferences. Originality/value Though labour market distortions in developing economies leading to a formal-informal wage gap are well-documented in the development literature, little attention has been given to the question of whether such a gap would close over time.

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