Sector‐specific sticky wages and wage subsidy: a note
Prabir C. Bhattacharya
(Department of Economics, Heriot‐Watt University, Edinburgh)
468
Abstract
This note sketches out the likely effects of a wage subsidy in a model of LDC which systematically incorporates an Informal sector. It is seen that the effects of a wage subsidy in this model differ considerably from those derived in the Harris‐Todaro‐type frameworks. Also, the ranking policies to improve welfare is likely to be considerably different in this model compared to this in the Harris‐Todaro‐type models.
Keywords
Citation
Bhattacharya, P.C. (1998), "Sector‐specific sticky wages and wage subsidy: a note", Journal of Economic Studies, Vol. 25 No. 2, pp. 124-128. https://doi.org/10.1108/01443589810202139
Publisher
:MCB UP Ltd
Copyright © 1998, MCB UP Limited