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Segmented Labor Markets and Unemployment
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
Birkbeck College, University of London.
1990 (English)Report (Other academic)
Abstract [en]

This paper suggests various alternatives to the Harris-Todaro theory in explaining unemployment in segmented labor markets. We focus on a labor market with a perfectly competitive secondary sector and an imperfectly competitive primary sector, the latter combining salient features of the efficiency wage, insider-outsider, and bargaining theories of employment and wage formation. Unemployment and labor market segmentation are explained with reference to heterogeneous preferences, productivities, and endowments amond workers. The responsiveness of unemployment to external shocks is shown to depend crucially on whether the above heterogeneities are exogenously given or whether they are endogenously generated through workers' employment histories.

Place, publisher, year, edition, pages
Stockholm: IIES , 1990. , 37 p.
Series
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 483
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-41790OAI: oai:DiVA.org:su-41790DiVA: diva2:337748
Available from: 2010-08-09 Created: 2010-08-09 Last updated: 2010-08-09Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
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  • Other style
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  • de-DE
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  • Other locale
More languages
Output format
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