This paper investigates the effects of export processing zones (EPZs) on factor rewards, national income and the output of the domestic intermediate good producing sector (backward linkage effect) in surpluslabor developing countries. It is shown that if the intermediate good is internationally...

In this paper we extend the Harris-Todaro model to include an urban informal sector. The effects of exogenous inflow of foreign capital on outputs, unemployment and welfare are examined in the model where the product of the informal sector is used as an industrial input in the urban formal...

This paper discusses the problem of unemployment in developed countries that faces international labor movement. There are two types of unemployment. The first traditional type of unemployment exists simply because the common wage rate is fixed and higher than the equilibrium level. The second...

This paper examines the effects of outsourcing on employment and unemployment and income distribution in an economy with Harris-Todaro type unemployment. This is because both wages and jobs are important concerns for an economy that engages in outsourcing and consequently experiences widespread...