Recession in the Skilled Sector and Implications for Informal Wage

Marjit, Sugata and Chaudhuri, Sarbajit and Kar, Saibal (2009): Recession in the Skilled Sector and Implications for Informal Wage.

Abstract

Global recession is likely to hit the skilled sector or the so-called white goods, white collared sector in a typical developing economy. In this paper we try to analyze the impact of such an event on informal wage as the vast majority of the workforce in the developing world is employed in the unorganized or informal sector. In particular, we demonstrate the analytical possibility that a recession in the skilled sector will actually increase real informal wage.

• Item Type: MPRA Paper
• Language: English
• Keywords: Recession, skill, capital-labor ratio, informal wage, general equilibrium
• Subjects: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure ; Wage Differentials; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J21 - Labor Force and Employment, Size, and Structure

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