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Sector Specific Minimum Wages and the Theory of Customs Unions

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  • Beladi, Hamid
  • Samanta, Subarna

Abstract

The purpose of this paper is to examine the welfare implications of traditional customs unions in a Harris-Todaro type of economy. In this context, the authors show, among other things, that, in the Harris-Todaro type of economy, the welfare implications of trade diversion I is ambiguous, while trade creation I and trade creation II are welfare improving. Copyright 1990 by Scottish Economic Society.

Suggested Citation

  • Beladi, Hamid & Samanta, Subarna, 1990. "Sector Specific Minimum Wages and the Theory of Customs Unions," Scottish Journal of Political Economy, Scottish Economic Society, vol. 37(2), pages 184-192, May.
    • Handle: RePEc:bla:scotjp:v:37:y:1990:i:2:p:184-92
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