Dual labor market and strategic efficiency wage

Jellal, Mohamed and wolff, François charles (2003): Dual labor market and strategic efficiency wage. Published in: INTERNATIONAL ECONOMIC JOURNAL No. Volume 17, Number 3, Autumn 2003

Abstract

We consider a dual labor markets model in which the primary sector requires the presence of efficiency wage, while the secondary sector is competitive. We show that the Solow condition does not hold in a Stackelberg equilibrium where the primary sector acts as a leader and the secondary one as a follower.

• Item Type: MPRA Paper
• Language: English
• Keywords: Solow condition, efficiency wage, dual labor markets
• Subjects: J - Labor and Demographic Economics > J4 - Particular Labor Markets > J41 - Labor Contracts; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements

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