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Sector Specific Wage Rigidity and Factor Accumulation *
Author(s) -
BELADI HAMID
Publication year - 1990
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1990.tb02083.x
Subject(s) - unemployment , economics , capital (architecture) , wage , capital accumulation , labour economics , rigidity (electromagnetism) , small open economy , human capital , macroeconomics , market economy , geography , archaeology , structural engineering , exchange rate , engineering
Economic expansion resulting from factor accumulation is introduced in the mobile capital and small open economy version of the Harris‐Todaro model. Among other things, it is shown that economy expansion leads to normal effects on urban unemployment if land is introduced as a scarce input in the agricultural sector. However, capital accumulation and labour growth have indeterminate effects on the absolute level of urban unemployment.