Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
984486 | Research in Economics | 2010 | 5 Pages |
Abstract
This paper focuses on the cost cutting effects of firm downsizing in a developing economy. Using a dualistic production structure to depict a developing economy, the impacts of downsizing on wage inequality and social welfare are examined. Downsizing is revealed to not only narrow the wage gap between skilled and unskilled labor but also to raise the level of manufactured output and reduce the unemployment ratio in the urban sector. These effects improve the social welfare of the economy.
Related Topics
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Economics and Econometrics
Authors
Hamid Beladi, Chi-Chur Chao,