Unemployment and International Factor Movement in the Presence of Skilled and Unskilled Labor
AbstractWidespread unemployment has been observed in some developing countries. On the other hand, extensive movement of labor across countries has also been observed. Therefore, in order to examine the interaction between the domestic and international labor markets, this paper develops a model that includes unemployment, international factor movement, and the difference between skilled and unskilled labor. The model examines the effect of production subsidies on unemployment and evaluates their effectiveness as a possible policy in order to alleviate the problem of unemployment. Further, this paper investigates the effects of international factor movement on unemployment and welfare. Copyright � 2007 The Author; Journal compilation � 2007 Blackwell Publishing Ltd.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of Development Economics.
Volume (Year): 11 (2007)
Issue (Month): 3 (08)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669
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- Beladi, Hamid & Chaudhuri, Sarbajit & Yabuuchi, Shigemi, 2007. "Can International Factor Mobility lessen Wage Inequality in a Dual Economy?," MPRA Paper 2641, University Library of Munich, Germany.
- Chaudhuri, Sarbajit, 2006.
"Wage Inequality in a Dual Economy and International Mobility of Factors: DO Factor Intensities always matter?,"
1356, University Library of Munich, Germany.
- Chaudhuri, Sarbajit, 2008. "Wage inequality in a dual economy and international mobility of factors: Do factor intensities always matter?," Economic Modelling, Elsevier, vol. 25(6), pages 1155-1164, November.
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