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A Theory of Dual Labor Markets with Application to Industrial Policy, Discrimination and Keynesian Unemployment / Jeremy I. Bulow, Lawrence H. Summers.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Bulow, Jeremy I.
Contributor:
National Bureau of Economic Research.
Summers, Lawrence H.
Series:
Working Paper Series (National Bureau of Economic Research) no. w1666.
NBER working paper series no. w1666
Language:
English
Subjects (All):
Manufacturing industries--Social aspects.
Manufacturing industries.
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 1985.
Cambridge, Mass. : National Bureau of Economic Research, 1985.
Summary:
This paper develops a model of dual labor markets based on employers' need to motivate workers. In order to elicit effort from their workers, employers may find it optimal to pay more than the going wage. This changes fundamentally the character of labor markets. The modelis applied to a wide range of labormarket phenomena. It provides a coherent framework for understanding the claims of industrial policy advocates. It also can provide the basis for a theory of occupational segregation and discrimination which will not be eroded by market forces. Finally, the model provides the basis for a theory of involuntary unemployment.
Notes:
Print version record
July 1985.

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