Mandal, Biswajit and Marjit, Sugata and Beladi, Hamid (2010): Recessionary shock, capital mobility and the informal sector.
Download (144kB) | Preview
Using the hybrid of Heckscher - Ohlin and Specific Factor models of trade we show that economic recession led shock results in a loss for both capitalists and skilled workers. Some of the unionized unskilled workers lose formal sector employment and move onto the informal sector. In case capital moves from formal to the informal, informal employment and wage both can go up in the informal segment. If capital does not move informal employment expands and wage drops. Thus recession may actually benefit a large number of informal workers.
|Item Type:||MPRA Paper|
|Original Title:||Recessionary shock, capital mobility and the informal sector|
|English Title:||Recessionary shock, capital mobility and the informal sector|
|Keywords:||International Trade, Informal sector, General Equilibrium|
|Subjects:||D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D50 - General
F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
|Depositing User:||Biswajit Mandal|
|Date Deposited:||27. Sep 2011 12:41|
|Last Modified:||16. Feb 2013 03:45|
Beladi, H. and C. Chao (1993) – Non-traded goods, urban unemployment and welfare in LDCs. European Journal of Political Economy, 9(2), pp 281-292.
Beladi, H. and S. Yabuuchi (2001) – Traiff induced capital inflow and welfare in the presence of unemployment and informal sector, Japan and the World Economy, 13(1), pp 51-60.
Brecher, R. and C. D. Alejandro (1977) – Traiff, foreign capital and immiserising growth. Journal of International Economics, 7(4), pp 317-322.
Chaudhuri, S. (2009) – Economic Recession and Informal Sector Workers, MPRA paper no.18033. http://mpra.ub.uni-muenchen.de/18033/.
Gruen, F. and M. Corden (1970) – A tariff that worsens terms of trade. In I. A. McDougall and R. H. Snapes (Eds) Studies in International Economics, Amsterdam: North-Holland
Jones, R.W. (1965) – The Structure of Simple General Equilibrium Models. Journal of Political Economy, 73, pp.557-572.
Jones, R.W. (1971) – A three-factor model in theory, trade and history. In Bhagwati, J et al (Eds) Trade, Balance of Payments and Growth, North- Holland, Amsterdam, pp. 3-21.
Jones, R.W. and S. Marjit (1992) – International trade and endogenous production structure. In Neuefeind, W et al (Eds) Economic Theory and International Trade: Essays in honour of J. Trout Rader, Sringer Verlag.
Jones, R.W. and S. Marjit (2009) – Competitive trade models and real world features. Economic Theory, Vol. 41 No. 1, pp – 163-174.
ILO (2002) - Men and Women in the Informal Economy. International Labour Organisation. 2002. ISBN 92-2-113103-3. Retrieved 2006-12-18.
ILO (2010) - Key Indicators of the Labour Market (KILM), Sixth Edition. International Labour Organization, Geneva.
Marjit, S. (2003) – Economic reform and informal wage: A general equilibrium analysis. Journal of Development Economics, 72(1), pp 371-378.
Marjit, S. (2005) – Complementarity and International Trade: on some recent development in structural general equilibrium models. In S. Lahiri and P. Maiti (Eds) Economic Theory in a changing world: Policy making for growth. OUP.
Marjit, S., Chaudhuri, S. and Kar, S. (2009) – Recession in the skilled sector and Implications for informal wage, MPRA paper no.18003. http://mpra.ub.uni-muenchen.de/18003/.
Marjit, S. and Kar, S. (2009) – A Contemporary Perspective on the Informal Labor Market: Theory, Policy and the Indian experience, Economic and Political Weekly, XLIV (14).
UNCTAD (2009) – Global economic crisis: implications for trade and development, Report by UNCTAD Secretariat.