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Capacity Utilization, Income Distribution, and the Urban Informal Sector: An Open-Economy Model

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dc.contributor.authorSchaefer, Kendall K.
dc.contributor.departmentUniversity of Massachusetts Amherst
dc.date2023-09-22T21:00:39.000
dc.date.accessioned2024-04-26T19:59:43Z
dc.date.available2024-04-26T19:59:43Z
dc.date.issued2002-01-01
dc.descriptionWorking Paper 35
dc.description.abstractDeveloping economies worldwide have experienced rapid informal sector expansion in response to formal sector unemployment. However, the macroeconomic effects of formal-informal sector dualism have been widely overlooked. This paper develops a two-sector, structuralist, macroeconomic model to analyze the impact of urban informal sector activity on export-led growth policy. The model uses stylized facts from the Johannesburg informal sector and is applicable to countries where informal sector production is concentrated in low-wage goods and commercial services. The paper finds that trade-offs between capacity utilization and reduced income inequality could be magnified when the existence of an urban informal sector is incorporated.
dc.identifier.doihttps://doi.org/10.7275/1274481
dc.identifier.urihttps://hdl.handle.net/20.500.14394/39988
dc.relation.urlhttps://scholarworks.umass.edu/cgi/viewcontent.cgi?article=1022&context=peri_workingpapers&unstamped=1
dc.source.issue35
dc.source.statuspublished
dc.subjectinformal sector
dc.subjectSouth Africa
dc.subjectmacroeconomic policy
dc.subjectEconomics
dc.titleCapacity Utilization, Income Distribution, and the Urban Informal Sector: An Open-Economy Model
dc.typearticle
dc.typearticle
digcom.contributor.authorSchaefer, Kendall K.
digcom.identifierperi_workingpapers/19
digcom.identifier.contextkey1274481
digcom.identifier.submissionpathperi_workingpapers/19
dspace.entity.typePublication
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