The impact of increased levels of international trade on domestic
labour markets is a key issue for policy makers in both developed
and less developed countries. This book considers the most
important current issues in this area in the context of models
which examine the relationship between trade and employment. It is
divided into three parts. The first deals with unemployment, decay
and the Dutch Disease'; the second with structural adjustment,
urban unemployment and protectionism; the last offers some
variations on models of unemployment. In parts one and two the
important insights are that minimum wages may cause decay rather
than growth and that disaggregation of non-traded goods between
urban and rural regions is of critical importance in structural
adjustment, protectionism and the real exchange rate. In part
three, segmented labour market theory is used to explain urban and
disguised unemployment and the importancef of proper agricultural
policies for rural development is emphasised.
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