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International tourism has experienced a substantial growth during the second half of twentieth century. Tourism development can contribute substantially to the reduction of poverty problem by creating new employment opportunities. The purpose of this paper is to analyse the effect of tourism development on unemployment problem using an efficiency wage framework.

The authors developed a two-sector two-factor static competitive general equilibrium model of a less-developed open economy called South with an imported traded goods sector and with a non-traded tourism service sector, and with two factors, capital and labour. Labour is measured in efficiency unit; there exists unemployment in the labour market which is explained by the efficiency wage hypothesis. The authors also consider extensions of the basic model by introducing an exportable traded goods sector as well as sector-specific capital in the tourism sector.

The authors show that, with perfect intersectoral mobility of capital and with only one traded good, tourism development in South lowers unemployment rate and raises national income. However, this tourism development neither affects unemployment rate nor national income in South, in the mobile-capital model when there are two traded goods. When tourism sector uses sector-specific capital but capital is mobile between two traded goods sectors, tourism development keeps the unemployment rate unchanged but raises national income in South.

There exists a lot of debate about economic benefits of tourism development in a less-developed economy. A few works analyse the economic effects of tourism without developing formal models. However, no existing work analyses the effect on unemployment in an efficiency wage model. Although Harris–Todaro model is of relevance to explain unemployment in low-income countries, efficiency wage models are relevant for middle-income countries.

The existing theoretical literature does not adequately take into consideration the existence of non-traded goods and the nature of capital mobility between the traded and the non-traded sectors in analyzing the consequences of liberalized investment policies on the relative wage inequality in the developing countries. The present chapter purports to fill in this gap by using two four-sector general equilibrium models reasonable for a developing economy. We have examined the outcome of foreign capital inflows on wage inequality when non-traded goods are intermediate inputs and final goods. Appropriate policy recommendations for improving the wage inequality have also been made.

What are the social and ecological roots of export diversification in the developing world? On the one hand, I attribute the growth of nontraditional, manufactured exports from the Dominican Republic to the traditional agro-export elite's use of free trade zones to offset the consequences of urban biased, import-substituting industrialization in the 1970s, and thereby portray diversification as an incremental response to government predation rather than a coherent product of government planning. On the other hand, I hold that the nature, timing, and location of the nontraditional export supply response have necessarily been circumscribed by preexisting social and ecological circumstances, and thereby underscore the structural impediments to similar diversification efforts elsewhere in the developing world. My findings are of both theoretical relevance and policy import, for they serve to underscore the limitations to the regnant neoliberal development orthodoxy as well as the available sociological alternatives.

Streissler considers Roscher′s theory of crisis to be highly original and important. Schumpeter, on the other hand, considers it only a rehash of the ideas of others. Examines this contradiction, beginning with a reflection on the essential elements of the debates on Keynes, Say′s law and classical economics. Continues by analysing the statements of German economists before Roscher on the issues of the general glut controversy. Ends with a closer inspection of Roscher′s own theory of crisis.

This paper investigates the role of infrastructure aid to developing countries beset with unemployment. Since unemployment persists in most developing countries with chronic foreign debts, the impact of infrastructure aid is analyzed using an extended Harris–Todaro model with two traded good sectors and a nontraded good sector. The paper delineates sufficient conditions under which infrastructure aid may lead to a Dutch disease effect.

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.

Analyses the effect of a minimum wage on unemployment. Using a model with covered and non‐covered sectors, comparative static analysis is performed with respect to the elasticity of demand for labour in the covered sector, the elasticity of the wage in the non‐covered sector with respect to the size of the non‐covered sector labour force, and the size of the minimum wage. It turns out, contrary to the existing literature, that for none of these parameters is the comparative static effect unidirectional.

This paper contributes to the empirical analysis of PhD holders' transition into the non-academic labor market (i.e. their intersectoral mobility). The research focuses on doctoral graduates specialized in a field of study supposed to have notable non-academic applications, namely Industrial and Information Engineering. We inspect whether these doctoral graduates experience lower satisfaction with PhD knowledge use on the job when they work outside universities and non-public research centers.

We use cross-sectional survey data collected by the Italian National Institute of Statistics in 2014. Ordinary least squares and ordered logit analyses provide baseline results; furthermore, we apply a multinomial endogenous treatment model to control for potential bias arising from self-selection into employment sectors.

We find evidence that for PhD holders Industrial and Information Engineering being employed in the industrial and services sector implies lower satisfaction with the use of doctoral knowledge than that reported by their counterparts working in universities or public research centers.

These results complement and extend previous evidence about PhD holders' career outcomes by focusing on the intersectoral mobility issue and on a specific group of doctoral graduates whose intersectoral mobility potential is expected to be high. Our findings call for policies that might trigger a better alignment between doctoral education and non-academic jobs.

The purpose of the paper was to establish the implications of globalisation for labour markets when efficiency wages create endogenous wage rigidity and to re‐examine the credibility of the arguments that call for deregulation, more wage flexibility and less social protection in this context.

The role of efficiency wages is reviewed in the traditional international economics theory, new economic geography and the neo‐Schumpeterian perspective towards international competitiveness.

First, taking into account endogenous sources of wage rigidity has different implications for employment, inequality, regional growth convergence and the role of the welfare state in the context of international competitiveness, from those derived when assuming them away or taking them as imposed by labour market institutions. Second, policies that would substantially reduce social security or lead to cost‐cuts may have an adverse effect on effort and thus on productivity.

To the author's knowledge, this paper is the only review in the literature that concentrates on efficiency wages applied in international trade.