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• W3122391570 abstract "This paper analyzes the macroeconomic effects of fiscal and labor market policies in a developing economy with an informal sector and a heterogeneous work force. A permanent reduction in government spending on nontraded goods leads in the long run to a deprecia- tion of the real exchange rate, a fall in the market-clearing wage for unskilled labor, an increase in output of traded goods, and a lower stock of net foreign assets. A permanent reduction in the minimum wage improves competitiveness, and expands the formal sector. The effect of changes in unemployment benefits are also analyzed. q 1999 Elsevier Science" @default.
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• W3122391570 date "1999-04-01" @default.
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• W3122391570 title "Macroeconomic adjustment with segmented labor markets" @default.
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• W3122391570 doi "https://doi.org/10.1016/s0304-3878(98)00114-x" @default.
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