Occupational Imbalances in Dual Labour surplus Economy - A Dynamic Analysis By

This paper attempts to study the behavior of occupational imbalances in dual labour surplus economy where industrial production is demand determined. Unlike the usual dual economy model we assume here wage gap is endogenous. Our result shows that the variable profit –wage ratio and the presence of turn over cost in the industrial sector creates a non-linear, deterministic economic structure that may generate fluctuations under some plausible values of the parameters.