{"title":"印度投资与工资差距:一般均衡分析","authors":"Subhasankar Chattopadhyay","doi":"10.1108/IGDR-12-2017-0104","DOIUrl":null,"url":null,"abstract":"Purpose\nThis paper aims to theoretically find out whether investments could close the formal-informal wage gap in India.\n\n\nDesign/methodology/approach\nThe paper builds a general equilibrium model of a developing economy with a large informal sector and a capital-intensive formal sector with sector-specific capital and incorporates endogenous demand.\n\n\nFindings\nWith homothetic preferences, a small initial wage premium and elastic relative demand, investment in the formal sector is likely to close the wage gap, but the gap persists with non-homothetic preferences. However, investment in the informal sector is unlikely to close the wage gap with either type of preferences.\n\n\nOriginality/value\nThough labour market distortions in developing economies leading to a formal-informal wage gap are well-documented in the development literature, little attention has been given to the question of whether such a gap would close over time.","PeriodicalId":42861,"journal":{"name":"Indian Growth and Development Review","volume":" ","pages":""},"PeriodicalIF":0.8000,"publicationDate":"2018-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1108/IGDR-12-2017-0104","citationCount":"2","resultStr":"{\"title\":\"Investment and wage gap in India: a general equilibrium analysis\",\"authors\":\"Subhasankar Chattopadhyay\",\"doi\":\"10.1108/IGDR-12-2017-0104\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"Purpose\\nThis paper aims to theoretically find out whether investments could close the formal-informal wage gap in India.\\n\\n\\nDesign/methodology/approach\\nThe paper builds a general equilibrium model of a developing economy with a large informal sector and a capital-intensive formal sector with sector-specific capital and incorporates endogenous demand.\\n\\n\\nFindings\\nWith homothetic preferences, a small initial wage premium and elastic relative demand, investment in the formal sector is likely to close the wage gap, but the gap persists with non-homothetic preferences. However, investment in the informal sector is unlikely to close the wage gap with either type of preferences.\\n\\n\\nOriginality/value\\nThough labour market distortions in developing economies leading to a formal-informal wage gap are well-documented in the development literature, little attention has been given to the question of whether such a gap would close over time.\",\"PeriodicalId\":42861,\"journal\":{\"name\":\"Indian Growth and Development Review\",\"volume\":\" \",\"pages\":\"\"},\"PeriodicalIF\":0.8000,\"publicationDate\":\"2018-10-12\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"https://sci-hub-pdf.com/10.1108/IGDR-12-2017-0104\",\"citationCount\":\"2\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"Indian Growth and Development Review\",\"FirstCategoryId\":\"1085\",\"ListUrlMain\":\"https://doi.org/10.1108/IGDR-12-2017-0104\",\"RegionNum\":0,\"RegionCategory\":null,\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"Q4\",\"JCRName\":\"DEVELOPMENT STUDIES\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"Indian Growth and Development Review","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/IGDR-12-2017-0104","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"DEVELOPMENT STUDIES","Score":null,"Total":0}
Investment and wage gap in India: a general equilibrium analysis
Purpose
This paper aims to theoretically find out whether investments could close the formal-informal wage gap in India.
Design/methodology/approach
The paper builds a general equilibrium model of a developing economy with a large informal sector and a capital-intensive formal sector with sector-specific capital and incorporates endogenous demand.
Findings
With homothetic preferences, a small initial wage premium and elastic relative demand, investment in the formal sector is likely to close the wage gap, but the gap persists with non-homothetic preferences. However, investment in the informal sector is unlikely to close the wage gap with either type of preferences.
Originality/value
Though labour market distortions in developing economies leading to a formal-informal wage gap are well-documented in the development literature, little attention has been given to the question of whether such a gap would close over time.