English, Article, Journal or magazine article edition: Labor Markets and the Choice of Technology in an Open Developing Economy Joshua Aizenman

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/141566
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Labor Markets and the Choice of Technology in an Open Developing Economy
Author
  • Joshua Aizenman
Physical Description
  • preprint
Notes
  • This paper highlights economic factors determining the choice of technology and openness in an intertemporal context in the presence of Institutional constraints In the labor market. It considers the case in which a more aggressive - development strategy involves an investment in a modern technology. This technology raises the degree to which real wages and productivity depend on external factors while at the same time It also raises the expected value of real income. In the absence of Such investment, production takes place in a traditional sector, using a technology that limits exposure to external shocks. The analysis evaluates the dependence of the choice of technology on the volatility of the shocks affecting the economy, the expected productivity gains, the investment cost associated with the modern technology, and the attitude towards risk. It starts with a benchmark case of a flexible wage/​employment economy. The dependence of openness, investment, and real wages on the attltuae towards risk is derived for such an economy. The paper then proceeds to analyze the implications of departures from the benchmark model. Specifically, it evaluates the effects of minimum wage policy on the choice of technology. it is demonstrated that institutional constraints in the labor market tend to discourage adoption of new technologies. The importance of this effect depends on the volatility of the underlying shocks. A rise In the volatility tends to be associated with a drop in the degree to which a given institutional structure constrains the move to the new sector. Thus, turbulent periods provide opportunities for structural shifts in favor of the new sector. The analysis assesses both the positive aspects of policies and the welfare costs associated with departures from fully flexible labor markets. It also discusses the interaction between institutional structure of the labor market and the use of protective measures that attempt to reduce exposure to external shocks.
  • RePEc:nbr:nberwo:1998
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment