Chaudhuri, Sarbajit and Bandopadhyay, Titas Kumar (2012): Endogenous skill formation, foreign capital and education subsidy in a dual economy.
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The present paper develops a three sector Harris-Todaro (1970) type general equilibrium model of unemployment by incorporating endogenous skill formation. Two types of labour are considered: skilled labour and un-skilled labour. We examine the effects of the inflows of foreign capital on the level of unskilled unemployment and skilled-unskilled wage inequality. We find that an inflow of foreign capital raises the skilled- unskilled wage gap and lowers the level of unemployment of the unskilled labour.
|Item Type:||MPRA Paper|
|Original Title:||Endogenous skill formation, foreign capital and education subsidy in a dual economy|
|English Title:||Endogenous skill formation, foreign capital and education subsidy in a dual economy|
|Keywords:||skill formation, foreign capital, education subsidy, wage inequality, unemployment|
|Subjects:||F - International Economics > F1 - Trade > F13 - Trade Policy; International Trade Organizations
J - Labor and Demographic Economics > J4 - Particular Labor Markets > J41 - Labor Contracts
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources; Human Development; Income Distribution; Migration
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J64 - Unemployment: Models, Duration, Incidence, and Job Search
|Depositing User:||Sarbajit Chaudhuri|
|Date Deposited:||01. Oct 2012 13:35|
|Last Modified:||13. Feb 2013 06:16|
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