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Emigration, Wage Inequality and Vanishing Sectors

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  • Marjit, Sugata
  • Kar, Saibal

Abstract

Emigration leads to finite changes in structure of production and sectors vanish because they cannot pay higher wages. Does emigration of one type of labor hurt the other non-emigrating type in this set up? We demonstrate various scenarios when real income of the emigrating and the non-emigrating type do not move together and in the process generalize some of the existing results in the literature. In particular emigration can lead to a drastic change in the degree of inequality depending on which sectors survive in the post-emigration scenario.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 19354.

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Date of creation: Sep 2009
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Handle: RePEc:pra:mprapa:19354

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Keywords: Skill; emigration; wages; inequality; reallocation.;

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  1. Anwar, Sajid, 2009. "Wage inequality, welfare and downsizing," Economics Letters, Elsevier, vol. 103(2), pages 75-77, May.
  2. Marjit, Sugata & Kar, Saibal, 2005. "Emigration and wage inequality," Economics Letters, Elsevier, vol. 88(1), pages 141-145, July.
  3. Jones, Ronald W., 1996. "International trade, real wages, and technical progress: The specific-factors model," International Review of Economics & Finance, Elsevier, vol. 5(2), pages 113-124.
  4. Reza Oladi & Hamid Beladi, 2007. "International Migration and Real Wages," Economics Bulletin, AccessEcon, vol. 6(30), pages 1-8.
  5. Findlay, Ronald & Jones, Ronald, 2000. "Factor bias and technical progress," Economics Letters, Elsevier, vol. 68(3), pages 303-308, September.
  6. repec:ebl:ecbull:v:6:y:2007:i:30:p:1-8 is not listed on IDEAS
  7. Anwar, Sajid, 2008. "Factor mobility, wage inequality and welfare," International Review of Economics & Finance, Elsevier, vol. 17(4), pages 495-506, October.
  8. Hamid Beladi & Sarbajit Chaudhuri & Shigemi Yabuuchi, 2008. "Can International Factor Mobility Reduce Wage Inequality in a Dual Economy?," Review of International Economics, Wiley Blackwell, vol. 16(5), pages 893-903, November.
  9. Anwar, Sajid, 2006. "Factor mobility and wage inequality in the presence of specialisation-based external economies," Economics Letters, Elsevier, vol. 93(1), pages 88-93, October.
  10. Mishra, Prachi, 2007. "Emigration and wages in source countries: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 82(1), pages 180-199, January.
  11. Ronald W. Jones, 1965. "The Structure of Simple General Equilibrium Models," Journal of Political Economy, University of Chicago Press, vol. 73, pages 557.
  12. Zafar Mahmood, 1991. "Emigration and Wages in an Open Economy: Some Evidence from Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 30(3), pages 243-262.
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Cited by:
  1. Chatterjee, Tonmoy & Gupta, Kausik, 2013. "Mobility of Capital and Health Sector:A Trade Theoretic Analysis," MPRA Paper 48557, University Library of Munich, Germany.
  2. Chatterjee, Tonmoy & Gupta, Kausik, 2013. "International Fragmentation in the Presence of Alternative Health Sector Scenario : A Theoretical Analysis," MPRA Paper 48559, University Library of Munich, Germany.
  3. Kikuchi, Toru & Marjit, Sugata & Mandal, Biswajit, 2011. "Trade with Time Zone Differences: Factor Market Implications," MPRA Paper 37931, University Library of Munich, Germany, revised 2012.
  4. Chatterjee, Tonmoy & Gupta, Kausik, 2014. "Health Care Quality vs Health Care Quantity: A General Equilibrium Analysis," MPRA Paper 57314, University Library of Munich, Germany.

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