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Skilled Worker Migration and Trade: Inequality and Welfare

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  • Spiros Bougheas
  • Doug Nelson

Abstract

We develop a two-sector, two-country model where trade is driven by technological differences. Each country is populated by large number of heterogeneous workers distinguished by their level of skills. Given that one country has a technological advantage in the skilled intensive good when we allow for both trade and migration skilled workers migrate to that country. We analyze the consequences of this migration for both inequality and welfare for the source and the host country.

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File URL: http://www.nottingham.ac.uk/gep/documents/papers/2010/10-19.pdf
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Paper provided by University of Nottingham, GEP in its series Discussion Papers with number 10/19.

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Handle: RePEc:not:notgep:10/19

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Keywords: Skilled Labor; Migration; Welfare; Political Economy;

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Cited by:
  1. Bougheas, Spiros & Nelson, Doug, 2013. "On the political economy of high skilled migration and international trade," European Economic Review, Elsevier, Elsevier, vol. 63(C), pages 206-224.

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