Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/98281
Authors: 
Ranis, Gustav
Year of Publication: 
1997
Series/Report no.: 
Center Discussion Paper 772
Abstract: 
This paper examines the apparent conflict between the classical assumption of a bargaining agricultural sector wage and the neoclassical assumption of a competitive wage in the context of a labor surplus developing economy. It concludes that the relatively inelastic supply of labor hours offered by low income small or landless farmers in the static micro-economic leisure/work context is perfectly consistent with the persistence for some time of an institutional real wage offered to the non-agricultural sector of the dual economy. Empirical evidence is brought to bear in support of that position.
Subjects: 
Institutional vs. Competitive Real Wage
Labor Surplus Economy
Neoclassical vs. Classical Labor Markets
Document Type: 
Working Paper

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