The impact of increased levels of international trade on domestic labor markets is a central issue for policy makers in both developed and less developed countries. "Models of Unemployment in Trade and Economic Development" considers the most significant current issues in this area within the context of models which examine the relationship between trade and unemployment. Divided into three sections, the book first examines unemployment, decay and "Dutch Disease." Later sections address structural adjustment, urban unemployment, protectionism, and various models of unemployment. The authors offer persuasive arguments that include the following: minimum wages cause decay rather than growth; disaggregation of non-traded goods between urban and rural regions is of critical importance in structural adjustment, protectionism, and the real exchange rate. Hazari and Sgro also use segmented labor market theory to illuminate urban and disguised unemployment. They emphasize the importance of agricultural policies for rural development and provide a lucid introduction to the impact of technology transfers on employment in both donor and recipient countries.

Part I: Uniform Real Minimum Wage Rates, Unemployment, Decay and Dutch Disease 1. A Two-Sector Model of a Closed Economy 2. Uniform Real Minimum Wage Rate, Unemployment, Growth and Decay 3. Booming Sector and the Dutch Disease with Unemployment Part II: Generalized Harris-Todaro Model, Structural Adjustment and Unemployment 4. Urban-Rural Structural Adjustment, Urban Unemployment with Traded and Non-Traded Goods 5. Protectionism and Industrialization in a Harris-Todaro Model with Non-Traded Goods 6. Tariffs, Terms of Trade, Unemployment and the Real Exchange Rate Part III: Further Variations on Models of Unemployment 7. Disguised Urban Unemployment and Welfare in a General Equilibrium Model with Segmented Labour Markets 8. Transfers, Structural Change, Welfare and Unemployment in a North-South Framework 9. Notes on Industrialization and Unemployment with Increasing Returns to Scale and Minimum Wages