Migration, Unemployment and Trade focuses on the issues of migration, welfare and unemployment in a trade and development framework. Several chapters of the book analyze the implications of internal labor mobility in a model designed to highlight its implications for regional welfare, urban unemployment, rural-urban dichotomy and structural adjustment. An important innovation in this work is the disaggregation of the economy and the use of separate utility functions to highlight non-homogeneity of preferences. The book also deals with international mobility of factors in different frameworks. In particular it concentrates on the highly emotive issue of legal and illegal migration. Thus this work incorporates interesting and important features of labor economics and factor mobility into trade and distortion theory.
The impact of increased levels of international trade on domestic labour markets is a key issue for policy makers in both developed and less developed countries. This book considers the most important current issues in this area in the context of models which examine the relationship between trade and employment. It is divided into three parts. The first deals with unemployment, decay and the `Dutch Disease': the second with structural adjustment, urban unemployment and protectionism; the last offers some variations on models of unemployment. In parts one and two the important insights are that minimum wages may cause decay rather than growth and that disaggregation of non-traded goods between urban and rural regions is of critical importance in structural adjustment, protectionism and the real exchange rate. In part three, segmented labour market theory is used to explain urban and disguised unemployment and the importance of proper agricultural policies for rural development is emphasised. Finally the impact of technology transfers on employment in both donor and recipient countries is explored.
This book, which was first published in 1980, is concerned with one particular branch of growth theory, namely descriptive growth theory. It is typically assumed in growth theory that both the factors and goods market are perfectly competitive. In particular this implies amongst other things that the reward to each factor is identical in each sector of the economy. In this book the assumption of identical factor rewards is relaxed and the implications of an intersectoral wage differential for economic growth are analysed. There is also some discussion on the short-term and long-run effects of minimum wage legislation on growth. This book will serve as key reading for students of economics.
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