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Labour markets, poverty and adjustment
Author(s) -
Addison Tony,
Demery Lionel
Publication year - 1993
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.3380050205
Subject(s) - economics , poverty , labour economics , imperfect , work (physics) , affect (linguistics) , economic growth , mechanical engineering , linguistics , philosophy , engineering
The labour market is one of the most important channels through which adjustment programmes affect the poor. Adjustment's poverty impact will differ between competitive and imperfect labour markets. Two effects on poverty are highlighted: changes in real wages arising from changes in labour demand and prices, and the reallocation of labour between sectors. These effects can work in the same or opposite directions, depending on the economy's structure. Since some workers may gain, and some may lose, workers can have conflicting interests during adjustment.