This paper has developed a three-sector general equilibrium framework that explains unemployment of both skilled and unskilled labour. Unemployment of unskilled labour is of the Harris-Todaro (1970) type while unemployment of skilled labour is caused due to the validity of the FWH in the...

The paper examines the welfare consequences of an inflow of foreign capital and an emigration of skilled labour in a small open economy in terms of a four sector general equilibrium model in the presence of endogenous skill formation and imperfection in the market for unskilled labour. It finds...

The paper examines the aptness of labour market reform in a developing country using a three-sector Harris-Todaro model with agricultural dualism and a non-traded final commodity. The paper, contrary to the common belief, finds that liberalization in the labour market may be desirable from the...