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Economic Recession, Informal Sector and Skilled–Unskilled Wage Disparity in a Developing Economy: A Trade-Theoretical Analysis
Foreign Trade Review ( IF 1.1 ) Pub Date : 2020-01-24 , DOI: 10.1177/0015732519894132
Sushobhan Mahata 1 , Rohan Kanti Khan 1 , Ranjanendra Narayan Nag 2
Affiliation  

The paper analyses some selective aspects of economic crises, namely skilled-sector recession, reversed international migration of labour and decline in foreign capital inflow on the informal sector employment and wage rate in developing economies and seeks to explain the non-monotonic effect on the informal sector both across nations and within nation across sectors. In so doing, we develop three-sector General Equilibrium models under two different scenarios which may apply to a large class of emerging market economies. In the first model, we have a traded informal export sector, and the role of the non-traded informal sector in the presence of credit market imperfection is analysed in the second model. Skilled-sector recession produces a favourable (unfavourable) effect on the workers employed in the traded informal sector (non-traded informal sector) due to an induced complementary relationship between the high-skilled export sector and the informal sector. A fall in emigration level of skilled or unskilled worker and a decline in foreign capital inflow hurt the workers in the informal traded sector, while the workers in the non-traded informal sector gain. The results of the paper reflect contradictions of an emerging economy, which is essentially hybrid economics in which capitalist nucleus has a conditional-conditioning relationship with an archaic structure. JEL Codes: F13, J31

中文翻译:

发展中经济体的经济衰退、非正规部门和技术与非技术工资差距:贸易理论分析

本文分析了经济危机的一些选择性方面,即技能部门衰退、劳动力国际迁移逆转和外国资本流入下降对发展中经济体非正规部门就业和工资率的影响,并试图解释对非正规部门就业和工资率的非单调影响。跨国家和国家内部跨部门的部门。为此,我们在两种不同的情景下开发了三部门一般均衡模型,这些模型可能适用于一大类新兴市场经济体。在第一个模型中,我们有一个贸易的非正规出口部门,在第二个模型中分析了非贸易非正规部门在信贷市场不完善的情况下的作用。由于高技能出口部门和非正规部门之间的诱导互补关系,技能部门衰退对贸易非正规部门(非贸易非正规部门)的就业工人产生有利(不利)影响。技术或非技术工人的移民水平下降以及外国资本流入的减少伤害了非正规贸易部门的工人,而非贸易的非正规部门的工人受益。论文的结果反映了新兴经济体的矛盾,这种经济体本质上是混合经济,其中资本主义核心与古老的结构具有条件制约关系。JEL 代码:F13、J31 技术或非技术工人的移民水平下降以及外国资本流入的减少伤害了非正规贸易部门的工人,而非贸易的非正规部门的工人受益。论文的结果反映了新兴经济体的矛盾,这种经济体本质上是混合经济,其中资本主义核心与古老的结构具有条件制约关系。JEL 代码:F13、J31 技术或非技术工人的移民水平下降以及外国资本流入的减少伤害了非正规贸易部门的工人,而非贸易的非正规部门的工人受益。论文的结果反映了新兴经济体的矛盾,这种经济体本质上是混合经济,其中资本主义核心与古老的结构具有条件制约关系。JEL 代码:F13、J31
更新日期:2020-01-24
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