On the Duality of Employment and Wages in the Garin-Lowry Model

Abstract

Previously undiscovered properties of the Garin-Lowry model are identified by presenting the model as a simple linear program. The primal program seeks a spatial allocation of employment which minimizes import requirements while satisfying basic-employment demand. The dual program seeks a spatial allocation of employee remuneration which maximizes the imputed value of basic employment while insuring that employee wages are not exceeded by the import costs of employee support. Thus a duality between employment and wages is identified, and the role of imports in wage determination is defined.