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Crime, efficiency of labour and trade: a theoretical analysis

Author

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  • Manash Ranjan Gupta

    (Indian Statistical Institute)

  • Priya Brata Dutta

    (Visva-Bharati University)

Abstract

We present a two-sector efficiency wage model of a small open economy in this paper where efficiency of labour not only varies positively with the wage rate and unemployment rate but also varies inversely with the volume of anti-social activity. We analyse how changes in factor endowments affect unemployment rate, size of the anti-social sector, level of output of two sectors, pattern of trade, and level of national income of the country. We also analyse how anti-crime policies, i.e., the punishment policies for anti-socials and unemployment allowances policies affect unemployment rate, output composition, pattern of trade, and the level of national income.

Suggested Citation

  • Manash Ranjan Gupta & Priya Brata Dutta, 2024. "Crime, efficiency of labour and trade: a theoretical analysis," Indian Economic Review, Springer, vol. 59(1), pages 105-136, June.
    • Handle: RePEc:spr:inecre:v:59:y:2024:i:1:d:10.1007_s41775-024-00213-3
    DOI: 10.1007/s41775-024-00213-3
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    References listed on IDEAS

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    More about this item

    Keywords

    Anti-social; Labour; Efficiency; Fine; Punishment; Unemployment allowance; Factor intensity; Pattern of trade; National income;
    All these keywords.

    JEL classification:

    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J47 - Labor and Demographic Economics - - Particular Labor Markets - - - Coercive Labor Markets

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