Inflow of labour, producer services and wage inequality
AbstractThis paper examines the issue of skilled–unskilled wage inequality in the shortrun when varieties of producer services are traded. It is shown that, irrespective of the relative size of income share of capital, inflow of neither skilled nor unskilled labour affects skilled–unskilled wage inequality. However, an increase in (i) the level of competition in the services sector and (ii) relative price of the varieties of producer services can affect the level of wage inequality.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 117 (2012)
Issue (Month): 3 ()
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Web page: http://www.elsevier.com/locate/ecolet
Globalisation; Labour mobility; Product varieties; Monopolistic competition; Skilled–unskilled wage inequality;
Find related papers by JEL classification:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
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