dLu/ dWr = 1/D (((L -Lr) - Lu(dWu /dWr))(ki -kr) + (Lu dku /dWr +Li dki/dWr
+Lr(dkr∕dWr))(Wi -Wr) - (Wikr -Wrki) dU/dWr) > ,=,< 0
dLi/dWr = 1/D ((( -Lu(dku/dWr) + Li(dki/dWr) +Lr(dkr/dWr) (Wu -Wr) + (Wukr -
Wrku) (dU/dWr) -((L -Lr) -Lu(dWu /dWr)) (ku -kr )) > ,=, < 0
And (dLr/dWr) = 1/D((( (L - Lr) - Lu( dWu/dWr)) (ku -kr) + (Lu(dku/dWr) +
Li(dki/dWr) + Lr(dkr/dWr)) (Wu -Wi) +(Wiku -Wuki) dU/dWr ) >, =, < 0
Now, (dLj/dPi) = (dLj/dWr) (dWr/dPi) for j = u,i and r.
References
Bandyopadhyay , M. and M. R. Gupta(1995a) “Development policies in the presence of
an informal sector : A note” Journal of economics 61,301 - 315.
Calvo,G.A.(1978)“Urban unemployment and wage determination in LDCs: trade
unions in the Harris-Todaro model” International Economic Review 19,65-81.
Chandra, V. and M. A. khan(1993)“Foreign investment in the presence of informal
sector” Economica 60, 79-103.
Fields, G.(1975)“Rural-urban migration, urban unemployment and underemployment
and job search activity in LDCs” Journal of Development Economics 2, 165-187.
Gupta, M. R.(1993) “Rural-Urban migration, informal sector and development policies
: a theoretical analysis” Journal of Development Economics 41,137-151.
Harris , J. R. and M. P. Todaro.(1970) “ Migration, Unemployment and Development
: A Two-Sector Analysis “ American Economic Review Vol.60, 126-142.
Khan, M.A. and Naqvi,S.N.H.(1983) “Capital Markets and Urban Unemployment”
Journal of International EconomicsVol.15, 367- 385.
Leibenstein, H.(1957)“Underemployment in Backward Economies”Journal of Political
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Quibria, M. G.(1988) “Migration, Trade Unions and the Informal Sector : a note on
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of labour in LDCs” Oxford Economic Papers 28, 185-207.
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