We consider a three sector model of informal sector which assumes efficiency wage hypothesis and explains the simultaneous existence of informal sector and urban unemployment. We also study the effects of subsidy policies given to different sectors and the effects of change in capital stock on...

We consider a small open Harris-Todaro(1970) 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. The main objective of this paper is to analyse the effects of...

We consider a small open Harris-Todaro (1970) 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. The main objective of this paper is to analyse the effects...

The purpose of this paper is to examine the Fields (1989) proposition in a multi sector general equilibrium model with perfect and imperfect capital mobility. The effects of different fiscal policies on the equilibrium rate of urban unemployment are also examined here. The main findings are more...

Agriculture plays important role in the export sector in many developing countries. Governments in developing countries have been providing export subsidy to their farmers to boost up their export performance. However, The WTO announced the removal of export subsidy for both the developed as...

Abstract: The present paper explains the different effects of trade reform on urban unemployment in a mobile capital model where urban formal wage is endogeneous and urban informal sector is globally connected. The main finding is that import-led reform raises urban unemployment, whereas...