|
|
|
|
Title: |
Labor Immobility, Technical Progress and
Welfare |
| Author: |
Parai, Amar K.;
Yu, Eden S. H. |
| Author
Affiliation: |
SUNY, Fredonia;
LA State U |
| Source: |
International Economic Journal, Autumn 1991, v. 5, no. 3, pp. 1-16 |
|
Publication Date: |
Autumn 1991 |
|
Abstract: |
The paper examines the effects of
technical progress on output, terms of trade, and welfare of a growing
open economy characterized by endogenous intersectoral wage differential
originating from imperfect labor mobility. It is shown that technical
progress is always ultra-biased regardless of the degree of labor
immobility, and improves (may deteriorate) the welfare of a small open
economy if labor immobility leads to a higher wage rate paid by the
programming (stationary) industry. For a large open economy, technical
progress would lead to a deterioration (improvement) in its terms of
trade if the progressing (stationary) sector paid the wage differential. |
|
