Working Paper No. 652

The Todaro Paradox Revisited

Publicerad: November 9, 2005Antal sidor: 25Nyckelord: Efficiency Wages; Search-Matching; Rural-Urban Migration; PolicyJEL-koder: D83; J41; J64; O15

The Todaro Paradox Revisited Yves Zenou


The Todaro Paradox states that policies aimed at reducing urban unemployment are bound to backfire: they will raise rather than reduce urban unemployment. The aim of this paper is to reexamine this paradox in the context of efficiency wage and search-matching models. For that, we study a policy that consists in decreasing the urban unemployment benefit. In an efficiency wage model, we find that there is no Todaro paradox while this is not always true in a search-matching model since a decrease in the urban unemployment benefit can increase both urban employment and unemployment.

 

Kollektivavtal och lönebildning i en ny tid

Kollektivavtal-framsida.gif

 Kollektivavtal och lönebildning i en ny tid av Lars Calmfors, Simon Ek och Per Skedinger, IFN, samt Ann-Sofie Kolm, Stockholms universitet, analyseras olika sätt att göra lönebildningen mer flexibel. Analysen utmanar den etablerade synen inom partsorganisationerna på hur lönebildningen bör fungera. 

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