Input trade reform and wage inequality

Show simple item record Mukherjee, Soumyatanu 2017-06-01T09:37:38Z 2017-06-01T09:37:38Z 2017
dc.description International Review of Economics and Finance 51 (2017) 145–156 en_US
dc.description.abstract This paper, using a general equilibrium model of production and trade for a developing country with non-traded goods, dual unskilled labour markets and internationally fragmented skillintensive production, illuminates how liberalised input trade affects the unskilled wages prevailing in the informal sectors and employment conditions in those sectors. Numerical analysis further highlights importance of the elasticities of factor substitution in production of different sectors to determine the movement in informal wage and therefore the movement in skilled–unskilled wage gap. These results are consistent with the empirical evidence on developing countries (like India) that suggests liberalisation-inequality relationship cannot be explained by focusing on tradable goods alone. en_US
dc.language.iso en en_US
dc.publisher Elsevier: International Review of Economics and Finance en_US
dc.subject Input trade reform en_US
dc.subject Non-traded goods en_US
dc.subject Informal wage en_US
dc.subject Informal employment en_US
dc.subject Wage inequality en_US
dc.subject General equilibrium en_US
dc.title Input trade reform and wage inequality en_US
dc.type Article en_US

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