Robalino Aguirre, David A.; Romero, Jose Manuel; Walker, Ian - 2020
developing countries see insufficient investment in projects that would reallocate labor towards better jobs. The concept of JLEs … other externalities, JLEs can be corrected using a variety of possible subsidies (such as: grants, subsidized infrastructure … investment. This paper shows that the optimal way to allocate subsidies to offset JLEs is through a competitive bidding process …