Thailand has experienced a decline in income inequality coupled with unimpressive economic growth since the end of the 1997/98 Asian financial crisis. This paper uses the structuralist approach to understand how these concurrent economic phenomena have become deeply intertwined. We argue that...

The aim of the present article is to further develop the line of research initiated by Oreiroet al. (2019) by expanding the database used to calculate the EQI and the EQG, but also to control the effects of variables other than the EQG, such as the amount of capital per worker, over the PCIG and...

Context: For many businesses, one of the key indicators in their management is the adaptation of Information Technology in their operations. In Kenya, there has been a phenomenal growth in access to mobile phones, by June 2023, over 66 million mobile phones were connected to various...

1. Overview -- Part I One-Sector Growth Models -- 2. Overlapping-Generations Model of Economic Growth -- 3. Fiscal Policy -- 4. Schooling and Fertility -- 5. A Complete One-Sector Neoclassical Growth Model -- Part II Two-Sector and Dual Economies -- 6.Two Sector Growth Models -- 7. Wage and...

Overview -- Overlapping-Generations Model of Economic Growth -- Fiscal Policy -- Schooling and Fertility -- A Complete One-Sector Neoclassical Growth Model -- Two Sector Growth Models -- Wage and Fertility Gaps in Dual Economies -- Physical Capital in Dual Economies -- A Complete Dual Economy --...

By simulating social planner's optimal redistributive policy, this paper analyzes government's high education policy in a dual economy composed by skilled workers that invest in education and unskilled workers that do not. In a developed economy, characterized by an equilibrium with low...

The informal sector constitutes a vital part of developing countries' economy. It serves as a major source of employment and livelihood for the urban poor. However, despite its multifaceted economic contributions in many developing countries, little is known about its contribution. Hence, this...

According to the IMF the informal sector accounts for 38% of economic activity in SSA and it is likely to grow further given the numerous regulations imposed on the formal sector. Since the activities of the informal sector are unrecorded, its energy needs are not considered when national energy...

The main objective of this paper is to contribute to in-depth literature on the relationship between growth and the informal sector in the presence of corruption. The impact of the interaction between growth and corruption on economic performance (increase or decrease of the informal sector)...

Mature economies may experience fl uctuations, but the average medium and long run growth rate matches the natural rate. Like Kaldor's neo-Keynesian models, the Marx-Goodwin tradition explains this outcome by endogenizing the distribution of income and assuming that the accumulation of capital...

This paper introduces contemporaneously available monetary data into an "equilibrium" model that combines rational expectations, market clearing, and incomplete information about monetary disturbances. Data on the current money stock involve a preliminary estimate that is subject to a subsequent...

Growth and structural transformation of the manufacturing sector in developing countries are generally considered to be the result of the expansion of the "modem" (large-scale) sector relative to the "traditional" (small-scale) sector. Examining the sources of labor productivity growth in...

An industry is modeled in which entrepreneurs, who are heterogeneous in ability, may produce formally or informally. It is shown how the formal-informal mix depends on the distribution of ability, product demand and a variety of parameters. The industry equilibrium is compared to one in which...

This paper examines the adjustment of developing country labor markets to macroeconomic shocks. It models as having two sectors: a formal salaried (tradable) sector that may or may not be affected by union or legislation induced wage rigidities, and an informal (nontradable) self-employment...

This paper analyzes the cyclical properties of worker flows in Brazil and Mexico, two important developing countries with large unregulated or "informal" sectors. It generates three stylized facts that are critical to the accurate modeling of the sector and which suggest the need to rethink the...

The evolution of inequality in permanent income is investigated during the course of a less developed country's transformation from a primarily agricultural to a primarily urban-industrial economy. The source of inequality is market luck in obtaining employment in the protected urban "formal...

This paper studies the impact of an increase in the enforcement of labor regulations on unemployment and inequality, using city level data from Brazil. We find that stricter enforcement (affecting the payment of mandated benefits to formal workers) leads to: higher unemployment, less income...

Tracking individual workers across employers and industries after Brazil's trade liberalization in the 1990s shows that foreign import penetration and tariff reductions trigger worker displacements but that neither comparative-advantage industries nor exporters absorb displaced workers for...

The paper addresses the impact of HIV/AIDS on per capita output and income, with particular emphasis on the role of labor mobility between the formal and informal sectors, and the impact of the epidemic on investment decisions. The study finds that HIV/AIDS affects both the supply of labor and...

The coexistence of urban and rural poverty and migration to cities is studied in a dual economy model where the acquisition of skills is costly and involves migration to urban areas. In this model, both the distribution of innate abilities and the distribution of wealth matter for the migration...

This paper examines whether growth regressions should incorporate dualism and structural change. If there is a differential across sectors in the marginal product of labour, changes in the structure of employment can raise aggregate total factor productivity. The paper develops empirical growth...

We develop a model of the interdependencies between migration, remittances and inequality, and investigate how migration and subsequent remittances affect inter-household inequality in the origin communities. An important feature of our model is that we take into account the impact of migration...

We analyze wage differentials mobility between the formal and informal sector in urban Mexico, using panel data on five quarters drawn from Mexico's Urban Employment Survey. We develop a dynamic random effects panel data model. It consists of two separate wage equations for the two sectors and a...

We analyze mobility in urban Mexico between three labor market states: working in the formal sector, working in the informal sector, and not working. We use a dynamic multinomial logit panel data model with random effects, explaining the labor market state of each individual during each time...

Pervasive credit constraints have been seen as major sources of slow growth in developing economies. This paper clarifies a mechanism through which an inefficient financial system can reduce productivity growth. Using a two-sector model, second, we examine the implications for employment and the...

We show that economies may exhibit a strong endogenous macroeconomic adaptation response to climate change. If climate change induces a structural change to the more productive sector, economies can benefit from climate change though productivities in both sectors are reduced. If climate change...