Efficiency Wages and Labor Mobility in an Open Economy /

The paper analyzes the role of labor market segmentation and relative wage rigidity in the transmission process of macroeconomic shocks in a two-sector optimizing model of a small open economy. The analysis is first conducted in the context of perfect intersectoral labor mobility. The discussion is...

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Автор: Santaella, Julio
Інші автори: Agenor, Pierre-Richard
Формат: Журнал
Мова:English
Опубліковано: Washington, D.C. : International Monetary Fund, 1993.
Серія:IMF Working Papers; Working Paper ; No. 1993/079
Онлайн доступ:Full text available on IMF
Опис
Резюме:The paper analyzes the role of labor market segmentation and relative wage rigidity in the transmission process of macroeconomic shocks in a two-sector optimizing model of a small open economy. The analysis is first conducted in the context of perfect intersectoral labor mobility. The discussion is then extended to consider the existence of short-run constraints on labor movements. The results highlight the role of efficiency considerations in the behavior of sectoral wages. A deflationary policy induces a reallocation of labor across sectors, but has no long-run effect on the unemployment rate.
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Фізичний опис:1 online resource (40 pages)
Формат:Mode of access: Internet
ISSN:1018-5941
Доступ:Electronic access restricted to authorized BRAC University faculty, staff and students