Sector-specific sticky wages and wage subsidy: A note

Prabir Chandra Bhattacharya

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    5 Citations (Scopus)


    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.

    Original languageEnglish
    Pages (from-to)124-128+83
    JournalJournal of Economic Studies
    Issue number2-3
    Publication statusPublished - 1998


    • Economics
    • Model
    • Subsidies
    • Wages


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