A Multisector Model of Labor Markets in Developing Countries : Implications for poverty reducing policies January 17 , 2008


We develop a multi-sector model of labor markets in developing countries in which workers can be in any of four states i) employed in the formal urban sector, ii) employed in the informal urban sector, iii) unemployed in the urban sector or, iv) employed in agriculture. Workers differ in the productivity of formal sector employment and there are floor wages… (More)

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