Imperfect labor mobility and unemployment in LDCs: Comment / Reply

Imperfect labor mobility and unemployment in LDCs: Comment / Reply

In a recent paper, Parai and Beladi (1997) extend the well-known Harris-Todaro model to consider imperfect labor mobility. Beyond unambiguous, support for protection in the case of a small open economy with unemployment and imperfect labor mobility is given. It is shown that the PB conclusion that t...

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Veröffentlicht in:Southern economic journal 1998-07, Vol.65 (1), p.178
Hauptverfasser: Gilbert, John, Mikic, Mia, Parai, Amar K, Beladi, Hamid
Format: Artikel
Sprache:eng
Schlagworte:
Developing countries
Economic models
Economic theory
Economics
Elasticity
Employment
Labor market
LDCs
Occupational mobility
Studies
Tariffs
Unemployment
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Zusammenfassung:In a recent paper, Parai and Beladi (1997) extend the well-known Harris-Todaro model to consider imperfect labor mobility. Beyond unambiguous, support for protection in the case of a small open economy with unemployment and imperfect labor mobility is given. It is shown that the PB conclusion that the optimal tariff is always positive is incorrect. Furthermore, this note contrasts PB's model with the existing literature on the open economy with unemployment. A response by Parai and Beladi is presented.
ISSN:0038-4038
2325-8012