Labor in the Puerto Rican Economy: Postwar Development and Stagnation

By Carlos E. Santiago | Go to book overview

Chapter 2
A Model of Labor Markets and
Mobility

The previous chapter described patterns of change of population and labor force during industrialization. What is required at this point, however, is a conceptual framework that helps provide an understanding of the possible behavioral influences that underlie these aggregate patterns of change. Thus, this chapter describes a conceptual framework that attempts to identify, in a useful way, existing labor markets in Puerto Rico and their evolution over time. In addition, an attempt is made to integrate microeconomic behavioral considerations into the analysis to better explain aggregate patterns of change.

Modern economic growth is associated with the rise of manufacturing and the decline of subsistence agriculture. The growth of urban formal (modern) activities and the expansion of commercial agriculture are also traditionally emphasized. The contribution of informal (traditional) sectors is ignored, except to the extent that they provide the leading sector with needed inputs. Yet some of the recent discussions about the limits to industrial employment expansion, the need for an equitable distribution of income, and the problems associated with rapid urbanization and migration suggest that greater attention should be given to identifying the less visible sectors of the economy and their potential for contributing to the development effort.

The framework is multisectoral and centers on the notion of economic dualism. More specifically, the intent is to capture dualism of a regional and technological nature. Dualism is represented by differences between sectors that tend to persist and widen over time, creating sharp contrasts. 1 These differences are apparent in the simultaneous emergence of dynamic growing enclaves

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Labor in the Puerto Rican Economy: Postwar Development and Stagnation
Table of contents

Table of contents

  • Title Page iii
  • Contents vii
  • Figures and Tables ix
  • Foreword xiii
  • Preface xv
  • Acknowledgments xxi
  • Chapter 1 the Demographics of the Puerto Rican Population and Labor Force Change 1
  • Notes 31
  • Chapter 2 a Model of Labor Markets and Mobility 35
  • Notes 70
  • Chapter 3 Cyclical and Secular Movements in Labor Supply 73
  • Notes 103
  • Chapter 4 Job Creation and Joblessness 105
  • Conclusions 140
  • Appendix 141
  • Notes 143
  • Chapter 5 Prospects for Human Resource Development 149
  • Notes 158
  • References 159
  • Index 171
  • About the Author 175
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