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International factor mobility, environmental pollution and skilled–unskilled wage inequality in developing countries

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  • Pan, Lijun
  • Zhou, Yu

Abstract

This paper establishes a static three-sector general equilibrium model by accommodating environmental pollution to investigate the impact exerted by skilled immigrants and foreign direct investment on the skilled–unskilled wage inequality. Environment is treated as an input for agricultural production. The production process of the urban low-skill sector generates environmental pollution, which deteriorates the rural environment and thereby influences agricultural production. The present paper highlights the role of environmental pollution in the determination of the skilled–unskilled wage inequality due to skilled immigrants and foreign direct investment.

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  • Pan, Lijun & Zhou, Yu, 2013. "International factor mobility, environmental pollution and skilled–unskilled wage inequality in developing countries," Economic Modelling, Elsevier, vol. 33(C), pages 826-831.
    • Handle: RePEc:eee:ecmode:v:33:y:2013:i:c:p:826-831
    DOI: 10.1016/j.econmod.2013.06.013
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    Cited by:

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    2. Pengqing Zhang, 2019. "Skill formation, environmental pollution, and wage inequality," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(2), pages 405-424, April.
    3. Jiří Balcar & Jan Šulák, 2021. "Urban environmental quality and out-migration intentions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(3), pages 579-607, June.
    4. Sarbajit Chaudhuri & Jayanta Kumar Dwibedi, 2022. "Anti‐immigration policy in developed countries: Welfare and distributional implications for developing economies," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(3), pages 358-381, September.
    5. Sun, Sizhong & Anwar, Sajid, 2015. "Taxation of labour, product varieties and skilled–unskilled wage inequality: Short run versus long run," International Review of Economics & Finance, Elsevier, vol. 38(C), pages 250-257.
    6. Pan, Lijun, 2014. "The impacts of education investment on skilled–unskilled wage inequality and economic development in developing countries," Economic Modelling, Elsevier, vol. 39(C), pages 174-181.
    7. Rashmi Ahuja, 2021. "Sectoral allocation of foreign capital inflows and skilled‐unskilled wage inequality in a developing economy: A theoretical model," Manchester School, University of Manchester, vol. 89(1), pages 86-101, January.
    8. Kuo‐Hsing Kuo & Shang‐Fen Wu & Cheng‐Te Lee, 2022. "The impact of environmental policy on wage inequality," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(4), pages 472-485, December.
    9. Pi, Jiancai & Zhang, Pengqing, 2018. "Skill-biased technological change and wage inequality in developing countries," International Review of Economics & Finance, Elsevier, vol. 56(C), pages 347-362.
    10. Han, Ahram & Kim, Taejong & Ten, Gi Khan & Wang, Shun, 2023. "Air pollution and gender imbalance in labor supply responses: Evidence from South Korea," Economic Modelling, Elsevier, vol. 124(C).
    11. Zhang, Pengqing, 2019. "Automation, wage inequality and implications of a robot tax," International Review of Economics & Finance, Elsevier, vol. 59(C), pages 500-509.
    12. Ma, Shuang & Li, Xueluan & Li, Ding & Guo, Huanxiu, 2023. "Does air pollution induce international migration? New evidence from Chinese residents," Economic Modelling, Elsevier, vol. 120(C).
    13. Leonard F. S. Wang & Ji Sun, 2023. "Corporate profit tax, firm entry with unemployment, and income inequality," Bulletin of Economic Research, Wiley Blackwell, vol. 75(2), pages 380-392, April.
    14. Anwar, Sajid & Sun, Sizhong, 2015. "Taxation of labour income and the skilled–unskilled wage inequality," Economic Modelling, Elsevier, vol. 47(C), pages 18-22.
    15. Jiancai Pi & Yu Zhou, 2015. "The impacts of corruption on wage inequality and rural–urban migration in developing countries," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 753-768, May.
    16. Azusa Nakamura, 2020. "Environmental disparities in an urban area, rural–urban migration, and urban unemployment," Asia-Pacific Journal of Regional Science, Springer, vol. 4(2), pages 463-477, June.
    17. Pi Jiancai & Ge Yang & Yin Jun, 2017. "The Impacts of Rural Property Rights on Urban Unemployment, Wage Inequality, and Welfare in Developing Countries," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 17(1), pages 1-15, February.
    18. Pi, Jiancai & Zhang, Pengqing, 2017. "Foreign capital, pollution control, and wage inequality in developing countries," International Review of Economics & Finance, Elsevier, vol. 48(C), pages 280-288.
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    More about this item

    Keywords

    Skilled immigrants; Foreign direct investment; Environmental pollution; Skilled–unskilled wage inequality;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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