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Imperfect Labor Mobility and Unemployment in a Dual Economy *
Author(s) -
Wei Gu,
Yabuuchi Shigemi
Publication year - 2006
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/j.1467-9396.2006.00650.x
Subject(s) - economics , unemployment , imperfect , dual (grammatical number) , subsidy , labour economics , full employment , labor mobility , dual economy , wage , macroeconomics , economic system , market economy , art , linguistics , philosophy , literature
This paper examines the implications of imperfect labor mobility and unemployment in developing countries. We analyze the effects of wage subsidy policies, factor growth, and the change in labor mobility on unemployment and national income in an economy that is characterized by the existence of both imperfect labor mobility and urban unemployment.