PROTECTION, INVOLUNTARY SELF-EMPLOYMENT AND WELFARE

被引:1
|
作者
Beladi, Hamid [1 ]
Marjit, Sugata
Xu, Xinpeng [2 ]
机构
[1] Univ Texas San Antonio, San Antonio, TX USA
[2] Hong Kong Polytech Univ, Hong Kong, Hong Kong, Peoples R China
关键词
F1; F13; F16; TRADE; COUNTRIES; INCOME;
D O I
10.1111/j.1468-5876.2010.00514.x
中图分类号
F [经济];
学科分类号
02 ;
摘要
A small open economy operates with a unionized import-competing sector and an informal "self-employed" sector. Productivity varies across people in the informal sector. The full-employment structure accommodates "underemployment or involuntary self-employment" in the flexible-wage informal sector. Protection increases the cost of capital and may increase the set of people who are involuntarily employed in the informal sector. Even if one ignores the consumption distortion effect of a tariff, the tariff may fail to be second-best because it may raise underemployment. Our results on tariff-reform are consistent with some recent empirical evidence.
引用
收藏
页码:184 / 195
页数:12
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