This note sketches out the likely effects of a wage subsidy in a model of LDC which systematically incorporates an Informal sector. It is seen that the effects of a wage subsidy in this model differ considerably from those derived in the Harris-Todaro-type frameworks. Also the ranking policies to improve welfare is likely to be considerably different in this model compared to this in the Harris-Todaro-type models. © MCB University Press.
|Journal||Journal of Economic Studies|
|Publication status||Published - 1998|