Abstract

The multisectoral framework of this study centers on the notion of dualism of a regional and technological nature. 6 sectors are highlighted and disaggregated by location of economic activity and form of organization: formal versus informal and rural versus urban. The descriptive framework is applied to the special case of Puerto Rico and its experience with industrial development between 1950 and 1980. Section I examines the multisectoral dualistic framework within the context of development theory and as a tool for identifying labor markets and labor mobility in developing countries. Section II discusses methodological issues that provide a basis for estimating employment and earnings within a multisectoral framework. Section III presents sectoral estimates of employment and earnings in Puerto Rico between 1950 and 1980. Section IV considers possible extensions of the analysis and an assessment of the usefulness of the framework for understanding labor markets in economic development. Changes in sectoral estimates of employment and earnings in Puerto Rico between 1950 and 1980 have been dramatic. This is consistent with an industrialization-1st development strategy. The interdependency between urban formal and informal labor markets may be increasing. Declines in real urban informal sector earnings in the face of high and stable open unemployment are consistent with the view that informal temporary employment and formal job search are complementary activities. The unexpected finding of this study is that the relative size of employment and earnings in the urban informal sector in Puerto Rico has declined with industrial expansion.

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