
Globalization, Labour Market Segmentation, Unemployment and Wage Inequality
A Theoretical Analysis
- Rakhi Banerjee Ranjanendra Narayan Nag
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제26권 제3호
- 등재여부 : KCI등재
- 2011.09
- 578 - 599 (22 pages)
In this paper we build up a three-sector general equilibrium framework to examine impact of agricultural trade liberalization, tariff rate restructuring and inflow of Foreign Direct Investment on unemployment and wage inequality in an emerging market economy. The paper shows that agricultural trade liberalization and tariff rate restructuring reduces the skilled-unskilled wage gap whereas increase in inflow of foreign capital may lead to worsening of income distribution. Multiple cross effects, factor specificity and factor intensity ranking play important roles in determining changes in output composition, factor rewards and unemployment in the wake of economic reforms.
Ⅰ. Introduction
Ⅱ. The Model
Ⅲ. Comparative Statics
Ⅴ. Conclusion