Ira Gang
Rutgers University
Department of Economics
E-mail: gang@economics.rutgers.edu
Item Number: [J7]
Title: Optimal Policies in a Dual Economy with Open Unemployment and
Surplus Labour
Abstract: In this paper we discuss the relationship between surplus
labour and open unemployment. Flexible work hours in rural agricultural economies
can lead
to surplus labour [see Sen (1966) and Bhatia (1979)], while fixity of wages
in urban manufacturing can lead to open unemployment [for example, see Harris
and Todaro (1970) and Bhatia (1979)l. Dual economies are often described
as economies having a backward agricultural sector coexisting with a modern
manufacturing sector. Thus, it is possible for a dual economy to possess
both surplus labour in rural agricultural areas and open unemployment in
urban manufacturing areas [Bhatia (1979, 1983) and Stark (1982).
Reference: Ira N. Gang and Shubhashis Gangopadhyay, Optimal Policies
in a Dual Economy with Open Unemployment and Surplus Labour, Oxford Economic
Papers, 39 (1987) 378-387.
Co-Author Information:
Shubhashis Gangopadhyay
India Development Foundation
E-Mail: shubg@vsnl.com
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