Please use this identifier to cite or link to this item:
Ranis, Gustav
Year of Publication: 
Series/Report no.: 
Center Discussion Paper 772
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.
Institutional vs. Competitive Real Wage
Labor Surplus Economy
Neoclassical vs. Classical Labor Markets
Document Type: 
Working Paper

Files in This Item:
309.47 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.