Lindbeck, Assar; Snower, Dennis J. - C.E.P.R. Discussion Papers - 1991
The paper suggests alternatives to the Harris-Todaro theory to explain unemployment in segmented labour markets. We … formation. Unemployment and labour-market segmentation are explained with reference to heterogeneous preferences, productivities … and endowments among workers. The responsiveness of unemployment to external shocks is shown to depend crucially on …