ILRIC 635 Lecture 11

ILRIC 635 Lecture 11 - ILRIC 635 Lecture 11 Read for Wed...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ILRIC 635 Lecture 11 Read for Wed – Corporate Engagement, Stiglitz: chapter 7 Read for Mon – Gramlich: 1-8, 30-33, 41-45, Stiglitz: chapter 3 Harris-Tudaro model works under the assumption that there is not preferential hiring If education is introduced as a form of preferential hiring: Unemp 200 100 300 1000 L ed - Education creates human capital – educated person is known to get the job first o The equilibrium at first only comes for uneducated (expected value) o After 100 people are educated, educated then judge expected value - Educated people sometimes use education to get jobs uneducated people can do o Therefore, to educate the 102 nd person may not pay off for society If informal sector is introduced to the Harris-Tudaro model, unemployment falls - Provides people with an income, and locates them near high paying jobs - Reduce chance at high paying jobs, because not searching full time Informality – jobs without the protections provided for by formal jobs -
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern