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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-1

No 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 type

Wage rate W

Wage rate W

Wage rate W

Wage rate W

Wage rate W

Wage rate W

IRL

0.04

− 0.03

− 0.04

0.76

0.19

− 0.06

FRL

− 1.81

− 1.16

− 0.90

CL

− 0.23

− 0.12

− 0.08

0.79

0.15

− 0.10

Involuntary unemployment

1.1

1.13

1.15

  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