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A Theory of Dual Labor Markets with Application to Industrial Policy, Discrimination and Keynesian Unemployment
Open accessAbstract
This paper develops a model of dual labor markets based on employers' need to motivate workers.In order to elicit effort from their workers, employers may find it optimal to pay more than the going wage.This changes fundamentally the character of labor markets.The model is applied to a wide range of labor market phenomena.it provides a coherent framework for understanding the claims of industrial policy advocates.it also can provide the basis for a theory of occupational segregation and discrimination which will not be eroded by market forces.Finally, the model provides the basis for a theory of involuntary unemployment.
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Citations
Cited by
Who Benefits from State and Local Economic Development Policies?
Bartik, T. J. (1991) · doi:10.17848/9780585223940 · Cited by 2,643
The Consequences of the Dependence of Quality on Price
Stiglitz, J. E. (1987) · Journal of Economic Literature · doi:10.7916/d8348wdh · Cited by 958
Brock, W. A., & Evans, D. S. (1989) · Small Business Economics · doi:10.1007/bf00389913 · Cited by 894
Taxes and Bribery: The Role of Wage Incentives
Besley, T., & McLaren, J. (1993) · The Economic Journal · doi:10.2307/2234340 · Cited by 579
An Evaluation of International Migration Theory: The North American Case
Massey, D. S., Arango, J., Hugo, G., Kouaouci, A., Pellegrino, A., & Taylor, J. E. (1994) · Population and Development Review · doi:10.2307/2137660 · Cited by 567
Metadata
- Authors
- Bulow, J., & Summers, L.
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 1985-07
- OpenAlex
- W3124399353
- Cited by
- 663
- References
- 0
- Type
- report
- Language
- en
- Open access
- green
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- CoChat. (2026). Citation check: A Theory of Dual Labor Markets with Application to Industrial Policy, Discrimination and Keynesian Unemployment. https://app.cochat.ai/papers/10.3386/w1666
- The paper
- Bulow, J., & Summers, L. (1985). A Theory of Dual Labor Markets with Application to Industrial Policy, Discrimination and Keynesian Unemployment. National Bureau of Economic Research. https://doi.org/10.3386/w1666
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
