Globalisation and Labour Markets Research Paper 2002 / 34 A General Model of Fair Wages in an Open Economy
نویسندگان
چکیده
We analyse the behaviour of a multi-sector small open economy with involuntary unemployment due to fair wages. The equilibrium level of employment depends in an intuitively appealing way on the sectoral structure of the economy. It is shown that induced changes in employment are a driving force behind many of the comparative static results. Fair wage variants of the Heckscher-Ohlin and the Ricardo-Viner model, respectively, are derived as special cases. JEL classification: F11, F16
منابع مشابه
Globalisation and Labour Markets Research Paper 2005 / 05 Fair Wages , Unemployment and Technological Change in a Global Economy
In this paper we analyze the effects of global and national technological change on employment levels and relative wages in an integrated two-country world (“Europe” and “America”), where both countries are characterized by equilibrium unemployment due to fair wage constraints. The asymmetry between the two countries arises from country-specific preferences towards wage inequality, with Europe'...
متن کاملFair Wages and Unemployment in a Small Open Economy
In this paper we develop a model of a multi-sector multi-factor small open economy with involuntary unemployment due to fair wages. The model is used inter alia to analyse the labour market effects of changes in unemployment benefits and the domestic labour supply. Our analysis covers both the case where factor prices do not react to endowment changes – as in the Heckscher-Ohlin model – and the...
متن کاملGlobalisation and Labour Markets Programme Research Paper 2002 / 18 Structural Adjustment and the Sectoral and Geographical Mobility of Labour
Conventional methods for analysing worker flows often focus on gross flows or transition probabilities. This is not necessarily informative for identifying the scale of labour ‘adjustment’ in an economy in the sense of the expansion and decline of industries. We develop a method which relates the individual characteristics of workers to net, rather than gross flows. Our method also allows for i...
متن کاملGlobalisation and Labour Markets Research Paper 2005 / 11 Migration , Trade and Wages
This study adopts a GNP function approach in order to examine the impact of migrant labour on domestic factors of production in the United Kingdom. We also examine the relationship between imports and migrants, which are two different facets of globalisation. We find that an increase in the number of unskilled migrants reduces the wages of unskilled domestic workers. However the quantitative im...
متن کاملMoney Growth Rules in an Emerging Small Open Economy with an informal sector
This paper is concerned with the saddle-path stability of monetary growth rules in a two-country two-sector dynamic stochastic general equilibrium model. Alongside standard features of emerging economies, such as a combination of producer and local currency pricing for exports, fiscal dominance and oil exports, this model also incorporates informal labour and production sectors and examines how...
متن کامل