Trade reform produces ambiguous results in the global economy. Some countries enjoy the benefits of trade reform, while some others suffer from this policy. The main purpose of this paper is to analyse the impact of trade reform on unemployment and the size of the informal sector in an...

The purpose of this paper is to extend the Fields’ (1989) multi sector job-search model in a three sector general equilibrium framework by introducing international trade and an input, capital. The three sectors are the rural sector, the urban informal sector and the urban formal sector. The...

ABSTRACT :- We consider a small open Harris-Todaro economy with a rural foreign enclave and urban informal sector. We introduce consumption-efficiency relation to explain the simultaneous existence of informal sector and urban unemployment. Different types of immobility and mobility of capital...

The purpose of this paper is to extend the Fields’ (1989) multi sector job-search model by introducing international trade and capital. Two types of capital are considered: fixed capital and mobile capital. The effects of search intensity and the inflow of foreign capital on the volume and the...

The paper fabricates endogenous skill formation in a two-sector general equilibrium model where the unemployment of the skilled workers is caused by efficiency wage. The paper also examines the effects of the immigration of unskilled labor, the emigration of skilled labor, and the inflow of...

The purpose of this paper is to examine Field's (1989) proposition in a multisector general equilibrium model with imperfect capital mobility. The effects of different fiscal policies on the equilibrium rate of urban unemployment are also examined. The main findings are (i) more efficient...

The paper builds a three sector model of a small open economy having perfect capital mobility among all the sectors and efficiency- wage relation in the low wage sector. The general equilibrium effects of subsidy policies on urban unemployment and domestic factor income are examined.The main...

This paper incorporates informal sector and efficiency wage relation in a Harris-Todaro econmy under differential production structure. The simultaneous existence of the urban informal sector and the urban unemployment has been explained interms of such efficiency wage relation. Two different...