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Should informal sector be subsidised?

Bandopadhyay, Titas Kumar (2006): Should informal sector be subsidised? Unpublished.

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Abstract

This paper explains the impact of output subsidy to the informal sector on urban unemployment and domestic factor income in a mobile capital model where urban formal wage is endogenous and the informal sector has global exposure.

Item Type:MPRA Paper
Language:English
Keywords:Informal sector; Subsidy
Subjects:R - Urban, Rural, and Regional Economics > R0 - General > R00 - General
ID Code:1775
Deposited By:Titas Bandopadhyay
Deposited On:13. Feb 2007
Last Modified:28. Jul 2011 15:57
References:

Bandyopadhyay , M. and M. R. Gupta, “Development policies in the presence of an informal sector : A note” , Journal of economics, 61, 1995a ,pp.301 – 315.

Calvo,G.A., “Urban unemployment and wage determination in LDCs: trade unions in the Harris-Todaro model”, International Economic Review, 19, 1978,pp.65-81.

Chandra, V. and M. A. khan, “Foreign investment in the presence of informal sector” , Economica , 60,1993,pp 79-103.

Fields, G., “Rural-urban migration, urban unemployment and underemployment and job search activity in LDCs” , Journal of Development Economics, 2, No. 2,1975, pp.165-187. Gupta, M. R., “Rural-Urban migration, informal sector and development policies : a theoretical analysis” , Journal of Development Economics, 41,1993, pp.137-151.

Harris , J. R. and M. P. Todaro, “ Migration, Unemployment and Development : A Two-Sector Analysis “, American Economic Review, Vol.60, 1970, pp.126-142.

Khan, M.A. and Naqvi,S.N.H.,” Capital Markets and Urban Unemployment”, Journal of International Economics,Vol.15, 1983,pp.367- 385.

Leibenstein, H.,”Underemployment in Backward Economies”,Journal of Political Economy,Vol.65,1957, pp.

Quibria, M. G., “Migration, Trade Unions and the Informal Sector : a note on Calvo” , International Economic Review, 29,1988,pp. 557-563.

.Stiglitz, J. E., “The efficiency wage hypothesis, surplus labour and the distribution of labour in LDCs”, Oxford Economic Papers, 28,1976.

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