Working Paper


J. Peter Neary
Ronald W. Jones



temporal wages sensitivity general equilibrium wage convergence equilibrium economics minimum wages labor market

Wage sensitivity rankings and temporal convergence (1988)

Abstract This paper examines the two-sector general equilibrium model under a variety of labor-market distortions, including minimum wages and factor price differentials (both absolute and proportional). We introduce a new concept - the "wage sensitivity" ranking between sectors - and show that a necessary and sufficient condition for temporal convergence locally is that the physically labor-intensive sector be the wage-sensitive sector.
Collections Ireland -> University College Dublin -> Economics Working Papers & Policy Papers
Ireland -> University College Dublin -> School of Economics
Ireland -> University College Dublin -> College of Social Sciences and Law

Full list of authors on original publication

J. Peter Neary, Ronald W. Jones

Experts in our system

J. Peter Neary
University College Dublin
Total Publications: 79