Recession in the Skilled Sector and Implications for Informal Wage

12 Pages Posted: 22 Oct 2009

See all articles by Sugata Marjit

Sugata Marjit

Centre for Studies in Social Sciences, Calcutta; City University of Hong Kong (CityUHK) - Department of Economics & Finance

Sarbajit Chaudhuri

University of Calcutta

Saibal Kar

Centre for Studies in Social Sciences, Calcutta; Institute of Labor Economics (IZA)

Date Written: April 21, 2009

Abstract

Global recession is likely to hit the skilled sector or the so-called white goods, white collared sector in a typical developing economy. In this paper we try to analyze the impact of such an event on informal wage as the vast majority of the workforce in the developing world is employed in the unorganized or informal sector. In particular, we demonstrate the analytical possibility that a recession in the skilled sector will actually increase real informal wage.

Keywords: Recession, skill, capital-labor ratio, informal wage, general equilibrium

JEL Classification: E31, J21, J31

Suggested Citation

Marjit, Sugata and Chaudhuri, Sarbajit and Kar, Saibal, Recession in the Skilled Sector and Implications for Informal Wage (April 21, 2009). Available at SSRN: https://ssrn.com/abstract=1492310 or http://dx.doi.org/10.2139/ssrn.1492310

Sugata Marjit

Centre for Studies in Social Sciences, Calcutta ( email )

R 1, B.P. Township
Kolkata, West Bengal, India
Kolkata, West Bengal 700094
India

City University of Hong Kong (CityUHK) - Department of Economics & Finance ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

Sarbajit Chaudhuri (Contact Author)

University of Calcutta ( email )

56A, B.T. Road
Kolkata, West Bengal 700 050
India
+91 33 2557 5082 (Phone)
+91 33 2844 1490 (Fax)

HOME PAGE: http://econpapers.repec.org/RAS/pch11.htm

Saibal Kar

Centre for Studies in Social Sciences, Calcutta ( email )

R-1, Baishnabghata Patuli Township
Calcutta, 700 094
India
91-33-2462 7252 (Phone)
91-33-2462 6183 (Fax)

HOME PAGE: http://www.cssscal.org

Institute of Labor Economics (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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