01789cas a2200253 a 4500 AALejournalIMF004238 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451968248 1018-5941 BD-DhAAL BD-DhAAL Aizenman, Joshua. Macroeconomic Adjustment with Segmented Labor Markets / Joshua Aizenman, Pierre-Richard Agenor. Washington, D.C. : International Monetary Fund, 1994. 1 online resource (50 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 This paper analyzes the macroeconomic effects of fiscal and labor market policies in developing countries. The basic framework considers a small open economy with a large informal production sector and a heterogeneous work force. The labor market is segmented as a result of efficiency considerations and minimum wage laws. The basic model is then extended to account for unemployment benefits, income taxation, and imperfect labor mobility across sectors. The analysis indicates, among other results, that a reduction in unemployement benefits has a positive effect on output of tradable goods by lowering both the level of efficiency wages and the relative rent captured by skilled workers. Mode of access: Internet Agenor, Pierre-Richard. IMF Working Papers; Working Paper ; No. 1994/056 Full text available on IMF http://elibrary.imf.org/view/journals/001/1994/056/001.1994.issue-056-en.xml IMF e-Library