Resource title

Domestic labor, foreign capital and national welfare

Resource image

image for OpenScout resource :: Domestic labor, foreign capital and national welfare

Resource description

The competitive allocation of labor across different sectors of an economy may not be socially optimal when one sector uses foreign capital. We argue that a suitably designed government intervention is required to restrict the sectors to their optimal size and maximize national welfare. Such a policy internalizes the possibility of repatriation and reinvestment. We demonstrate the optimality of a minimum wage regulation.

Resource author

Udo Broll, Sabine Hansen, Sugata Marjit

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/22716

Resource license

Adapt according to the presented license agreement and reference the original author.