Sector‐specific sticky wages and wage subsidy: a note

Prabir C. Bhattacharya (Department of Economics, Heriot‐Watt University, Edinburgh)

Journal of Economic Studies

ISSN: 0144-3585

Publication date: 1 April 1998


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.



Bhattacharya, P. (1998), "Sector‐specific sticky wages and wage subsidy: a note", Journal of Economic Studies, Vol. 25 No. 2, pp. 124-128.

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Copyright © 1998, MCB UP Limited

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