Migration and the skill composition of the labor force : the impact of trade liberalization in developing countries
AbstractIn the standard Heckscher-Ohlin model, trade and migration are substitutes (that is, migration decreases with trade liberalization). The authors add four factors to the standard Heckscher-Ohlin model: labor skill levels (skilled or unskilled), international labor mobility, migration costs, and financing constraints. They examine two types of simulation. Case one applies to countries in the post-demographic transition stage, with a stable population. This includes countries of Eastern Europe and the former Soviet Union. Case two applies to countries with rapidly growing populations, such as Egypt, El Salvador, Mexico, and Morocco. In case one, trade liberalization raises emigration of the unskilled (and has no effect on emigration of the skilled), while greater protection raises emigration of the skilled (and has no effect on emigration of the unskilled). That is, any change in trade policy raises total emigration, but trade liberalization improves the average skill level of the labor force and increased protection lowers it. In case two, trade liberalization raises emigration of the unskilled and reduces emigration of the skilled. That is, the average skill level rises and thenet effect on total emigration is ambiguous. The opposite occurs with increased protection. In both cases, the average skill level of the population falls when protection increases in the presence of international migration, high migration costs, and financing constraints. Under the same circumstances, the skill level rises under trade liberalization.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 1493.
Date of creation: 31 Aug 1995
Date of revision:
Health Monitoring&Evaluation; Environmental Economics&Policies; Banks&Banking Reform; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Economic Theory&Research;
Find related papers by JEL classification:
- TF0 - - - - - -
- FUN - International Economics - - - - -
- OPE - Economic Development, Technological Change, and Growth - - - - -
- ADM - General Economics and Teaching - - - - -
- FEE - International Economics - - - - -
- INC - Health, Education, and Welfare - - - - -
- AND - General Economics and Teaching - - - - -
- EXP - Macroeconomics and Monetary Economics - - - - -
- ACC - General Economics and Teaching - - - - -
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jagdish N. Bhagwati, 1978. "Anatomy and Consequences of Exchange Control Regimes," NBER Books, National Bureau of Economic Research, Inc, number bhag78-1.
- Faini, Riccardo & Venturini, Alessandra, 1993. "Trade, aid and migrations: Some basic policy issues," European Economic Review, Elsevier, vol. 37(2-3), pages 435-442, April.
- Russell, S.S. & Teitelbaum, M.S., 1992. "International Migration and International Trade," World Bank - Discussion Papers 160, World Bank.
- Adams, Richard H., Jr., 1991. "The effects of international remittances on poverty, inequality, and development in rural Egypt:," Research reports 86, International Food Policy Research Institute (IFPRI).
- Markusen, James R., 1983. "Factor movements and commodity trade as complements," Journal of International Economics, Elsevier, vol. 14(3-4), pages 341-356, May.
- Wong, Kar-Yiu, 1983. "On choosing among trade in goods and international capital and labor mobility : A theoretical analysis," Journal of International Economics, Elsevier, vol. 14(3-4), pages 223-250, May.
- Holzmann, Robert & Munz, Rainer, 2004. "Challenges and opportunities of international migration for the EU, its member states, neighboring countries, and regions : a Policy Note," Social Protection Discussion Papers 30160, The World Bank.
- Amaranta Melchor del Río & Susanne Thorwarth, 2006. "Tomatoes or Tomato Pickers? - Free Trade and Migration in the NAFTA Case," Working Papers 0429, University of Heidelberg, Department of Economics, revised Dec 2006.
- Prashant Bharadwaj & James Fenske, 2011.
"Partition, Migration, and Jute Cultivation in India,"
Journal of Development Studies,
Taylor & Francis Journals, vol. 48(8), pages 1084-1107, January.
- Fenske, James & Bharadwaj, Prashant, 2010. "Partition, migration, and jute cultivation in India," MPRA Paper 22979, University Library of Munich, Germany.
- Zhu, Nong & Luo, Xubei, 2008. "The impact of remittances on rural poverty and inequality in China," Policy Research Working Paper Series 4637, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.