Skip to main content

The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

Table 4 (Scenario A1–A2:S1–S3) change in economy-wide wage rate across various categories of labour and involuntary unemployment rate (%) due to 50% tariff cut

From: Impact of trade liberalisation on formal–informal interlinkages in India: does sectoral labour mobility matter?

 Segmented labour market-1No segmentation
\(\sigma_{j}^{LD} = 0. 2\)\(\sigma_{j}^{LD} = 1. 2\)\(\sigma_{j}^{LD} = 2. 5\)\(\sigma_{j}^{LD} = 0. 2\)\(\sigma_{j}^{LD} = 1. 2\)\(\sigma_{j}^{LD} = 2. 5\)
Labour typeWage rate WWage rate WWage rate WWage rate WWage rate WWage rate W
IRL0.04− 0.03− 0.040.760.19− 0.06
FRL− 1.81− 1.16− 0.90
CL− 0.23− 0.12− 0.080.790.15− 0.10
Involuntary unemployment1.11.131.15
  1. – stands for no change. Sectoral wage rates are not considered in our analysis. In our model set-up we consider economy-wide average wage rates across all sectors