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Moving People or Jobs? A New Perspective on Immigration and International Outsourcing

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Author Info
Hamid Beladi (University of Texas at San Antonio)
Avik Chakrabarti (University of Wisconsin-Milwaukee)
Abstract

We present a model that allows us to compare the effects that frictions involved in immigration and international outsourcing have on the skilled-unskilled wage inequality. We show that, for any given level of contractual friction in the production of intermediate goods, the wedge between the wages of the skilled and unskilled workers widens as the frictions in immigration wear out. The skilled-unskilled wage gap, for any given level of friction in immigration, is sensitive to variations in contractual frictions in intermediates that affect international outsourcing.

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File URL: http://www.business.utsa.edu/wps/eco/0041ECO-414-2008.pdf
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Publisher Info
Paper provided by College of Business, University of Texas at San Antonio in its series Working Papers with number 0041.

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Length: 19 pages
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Handle: RePEc:tsa:wpaper:0041

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Related research
Keywords: Wage Inequality; Immigration; Outsourcing; Contract Theory.;

Find related papers by JEL classification:
F1 - International Economics - - Trade
F3 - International Economics - - International Finance
F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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This page was last updated on 2010-1-2.

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