Job Creation in a Multi-Sector Labor Market Model for Developing Economies
Published By: Institute for the Study of Labor (IZA) | Published Date: May, 01 , 2016This paper proposes an overlapping generations multi-sector model of the labor market for developing countries with three heterogeneities – heterogeneity within self-employment, heterogeneity in ability, and heterogeneity in age. The model also sheds light on the implications
of increasing high-wage employment on self-employed workers, who make up most of the world’s poor. Non-monotonicity in unemployment notwithstanding, increasing high-wage employment has an unambiguous positive impact on high-paying self-employment, and an
unambiguous negative impact on free-entry (low-wage) self-employment.
Author(s): Arnab K. Basu, Nancy H. Chau, Gary S. Fields, Ravi Kanbur | Posted on: Jun 22, 2016 | Views() | Download (180)