Employment,output and the choice of techniques: The trade-off revisited |
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| Institution: | 1. Environment and Sustainable Development Unit, Faculty of Agricultural and Food Sciences, American University of Beirut, Lebanon;2. Cirad, UR Green, Campus international de Baillarguet, 34398, Montpellier Cedex 5, France;3. Department of Agriculture, Faculty of Agricultural and Food Sciences, American University of Beirut, Lebanon;1. Department of Land Economy, College of Art and Built Environment, KNUST, Kumasi, Ghana;2. Centre for Land Studies, College of Art and Built Environment, KNUST, Kumasi, Ghana;1. The James Hutton Institute, Craigiebuckler, Aberdeen AB15 8QH, Scotland, UK;2. Biomathematics and Statistics Scotland, Craigiebuckler, Aberdeen AB15 8QH, Scotland, UK |
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| Abstract: | In this paper we explore the choice of techniques issue in a dual economy model with unemployment in the urban sector. Conventional wisdom suggests that developing societies attempting to modernize and transform backward sectors into advanced ones do so by choosing labor-intensive technologies to avoid rising unemployment. We analyze the effect of labor-intensive technology on (a) the level of urban unemployment, and (b) the relationship between the levels of urban employment and unemployment. We show under quite reasonable conditions that choosing a labor-intensive technology will actually aggravate the unemployment problem. We also show that the nature and pattern of the trade-off between modernization and employment are crucially dependent on the existing agricultural technology. |
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