A note on the shadow wage in LCDs with migration and formal and informal urban sectors

Oded Stark

doi:10.1016/0165-1765(80)90037-3

A note on the shadow wage in LCDs with migration and formal and informal urban sectors

Oded Stark^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

Abstract

Given induced rural-to-urban migration, the social cost of (unskilled) labour for urban public sector projects is shown to be lower than the formal-sector, exogenously-determined wage. This result is valid not only when the urban alternative to formal employment is unemployment but also (and more realistically) when the relevant alternatives are formal employment, informal employment and unemployment.

Original language	English
Pages (from-to)	235-240
Number of pages	6
Journal	Economics Letters
Volume	5
Issue number	3
DOIs	https://doi.org/10.1016/0165-1765(80)90037-3
State	Published - 1980
Externally published	Yes

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10.1016/0165-1765(80)90037-3

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A note on the shadow wage in LCDs with migration and formal and informal urban sectors

Abstract

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