Alternative Theories of Wage Determination and Unemployment in LDC's: The Labor Turnover Model

Abstract

I. Introduction, 194. — II. The model, 196. — III. The market equilibrium, 205. — IV. Optimal allocation of labor and determination of urban wage level, 207. — V. Wage subsidies, 214. — VI. Wages and shadow price of labor in the public sector, 218. — VII. Urban income taxes, 220. — VIII. Concluding comments and summary, 222. — Appendix: “nominal” and “expected” urban wages and the unemployment rate, 223.