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Efficiency wage, unemployment and tourism development: a theoretical analysis
Indian Growth and Development Review Pub Date : 2019-11-11 , DOI: 10.1108/igdr-11-2018-0125
Manash Ranjan Gupta , Priya Brata Dutta

International tourism has experienced a substantial growth during the second half of twentieth century. Tourism development can contribute substantially to the reduction of poverty problem by creating new employment opportunities. The purpose of this paper is to analyse the effect of tourism development on unemployment problem using an efficiency wage framework.,The authors developed a two-sector two-factor static competitive general equilibrium model of a less-developed open economy called South with an imported traded goods sector and with a non-traded tourism service sector, and with two factors, capital and labour. Labour is measured in efficiency unit; there exists unemployment in the labour market which is explained by the efficiency wage hypothesis. The authors also consider extensions of the basic model by introducing an exportable traded goods sector as well as sector-specific capital in the tourism sector.,The authors show that, with perfect intersectoral mobility of capital and with only one traded good, tourism development in South lowers unemployment rate and raises national income. However, this tourism development neither affects unemployment rate nor national income in South, in the mobile-capital model when there are two traded goods. When tourism sector uses sector-specific capital but capital is mobile between two traded goods sectors, tourism development keeps the unemployment rate unchanged but raises national income in South.,There exists a lot of debate about economic benefits of tourism development in a less-developed economy. A few works analyse the economic effects of tourism without developing formal models. However, no existing work analyses the effect on unemployment in an efficiency wage model. Although Harris–Todaro model is of relevance to explain unemployment in low-income countries, efficiency wage models are relevant for middle-income countries.

中文翻译:

效率工资、失业和旅游业发展:理论分析

国际旅游业在 20 世纪下半叶经历了大幅增长。旅游业的发展可以通过创造新的就业机会对减少贫困问题做出重大贡献。本文的目的是利用效率工资框架分析旅游业发展对失业问题的影响。贸易商品部门和非贸易旅游服务部门,以及资本和劳动力两个要素。劳动力以效率单位衡量;劳动力市场存在失业,这是由效率工资假说解释的。作者还考虑通过在旅游部门引入可出口贸易商品部门和特定部门资本来扩展基本模型。作者表明,在资本完美的部门间流动和只有一种贸易商品的情况下,旅游发展南方降低失业率并提高国民收入。然而,这种旅游业的发展既不影响失业率也不影响南方的国民收入,在流动资本模型中,当有两种贸易商品时。当旅游部门使用特定部门的资本但资本在两个贸易商品部门之间流动时,旅游发展保持失业率不变,但提高了南方的国民收入。,关于欠发达地区旅游发展的经济效益存在很多争论经济。一些作品在没有开发正式模型的情况下分析了旅游业的经济影响。然而,没有现有的工作分析效率工资模型对失业的影响。尽管 Harris-Todaro 模型与解释低收入国家的失业相关,但效率工资模型与中等收入国家相关。
更新日期:2019-11-11
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