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| Summary |
We analyze the behavior of a multi-sector small open economy with involuntary unemployment due to fair wages. The equilibrium level of employment depends in an intuitively appealing way on the sectoral structure of the economy. It is shown that induced changes in employment are a driving force behind many of the comparative static results. Fair wage variants of the Heckscher-Ohlin and the Ricardo-Viner model, respectively, are derived as special cases.
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| 1.1 Socio- economic Sector (OECD) |
331 Trade
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| 1.2 Institutional dimension |
Social- livelihood systems/ Gender
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| 1.4 Target group(s) |
5. Decision makers/Policymakers
2. SMEs/Private sector
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| 2.2 Production Chain |
7. Marketing
8. Quality Control
2. Production & Management
9. Consumption/Product Use
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