01761cas a2200241 a 4500 AALejournalIMF000902 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451979138 1018-5941 BD-DhAAL BD-DhAAL Demekas, Dimitri. Labor Market Segmentation in a Two-Sector Model of An Open Economy / Dimitri Demekas. Washington, D.C. : International Monetary Fund, 1990. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper examines formally the effects of labor market segmentation in a two-sector open economy model. The model demonstrates how the structure of the labor market affects the real exchange rate, defined as the relative price of traded and home goods, and is then used to examine the effects of two common labor market policies: increasing the degree of primary market coverage, and implementing wage restraint in the primary market. It is shown that increasing the degree of primary market coverage increases unemployment and leads to a real appreciation. Real wage restraint in the primary market, on the other hand, reduces unemployment, and has ambiguous but probably small effects on the real exchange rate. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1990/033 Full text available on IMF http://elibrary.imf.org/view/journals/001/1990/033/001.1990.issue-033-en.xml IMF e-Library