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Can International Factor Mobility lessen Wage Inequality in a Dual Economy?

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Author Info
Beladi, Hamid
Chaudhuri, Sarbajit
Yabuuchi, Shigemi

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Abstract

We introduce international labor mobility in a three-sector general equilibrium model with rural-urban migration. We demonstrate that under some reasonable conditions an inflow of foreign skilled labor (capital) can reduce skilled-unskilled wage inequality.

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File URL: http://mpra.ub.uni-muenchen.de/2641/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2641.

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Date of creation: 03 Jan 2007
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Handle: RePEc:pra:mprapa:2641

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Related research
Keywords: Skilled-unskilled wage inequality rural-urban migration Unemployment International factor movements

Find related papers by JEL classification:
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
F22 - International Economics - - International Factor Movements and International Business - - - International Migration

This paper has been announced in the following NEP Reports:

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  1. Yabuuchi, Shigemi & Chaudhuri, Sarbajit, 2007. "International migration of labour and skilled-unskilled wage inequality in a developing economy," Economic Modelling, Elsevier, vol. 24(1), pages 128-137, January. [Downloadable!] (restricted)
  2. Sugata Marjit & Hamid Beladi & Avik Chakrabarti, 2004. "Trade and Wage Inequality in Developing Countries," Economic Inquiry, Oxford University Press, vol. 42(2), pages 295-303, April. [Downloadable!] (restricted)
  3. Shigemi Yabuuchi, 2007. "Unemployment and International Factor Movement in the Presence of Skilled and Unskilled Labor," Review of Development Economics, Blackwell Publishing, vol. 11(3), pages 437-449, 08. [Downloadable!] (restricted)
  4. Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," World Bank Economic Review, Oxford University Press, vol. 11(1), pages 33-57, January.
  5. Sarbajit Chaudhuri & Shigemi Yabuuchi, 2005. "Economic Liberalization And Wage Inequality In The Presence Of Labour Market Imperfection," International Trade 0510008, EconWPA. [Downloadable!]
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  6. Chaudhuri, Sarbajit, 2007. "Foreign capital, welfare and urban unemployment in the presence of agricultural dualism," Japan and the World Economy, Elsevier, vol. 19(2), pages 149-165, March. [Downloadable!] (restricted)
    Other versions:
  7. Marjit, Sugata & Kar, Saibal, 2005. "Emigration and wage inequality," Economics Letters, Elsevier, vol. 88(1), pages 141-145, July. [Downloadable!] (restricted)
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