International Migration of Labour and Skilled-Unskilled Wage Inequality
AbstractThe present note develops a three sector general equilibrium structure with diverse trade pattern and imperfection in the unskilled labour market to analyze the consequences of international mobility of skilled and unskilled labour on the skilled-unskilled wage inequality in the developing economies. The analysis finds that an emigration (immigration) of either type of labour is likely to produce a favourable (an unfavourable) effect on the wage inequality. In particular, the result of emigration (immigration) of skilled labour on the relative wage inequality is counterintuitive. These results have important policy implications for an overpopulated developing country like India.
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Bibliographic InfoPaper provided by EconWPA in its series International Trade with number 0510007.
Length: 10 pages
Date of creation: 20 Oct 2005
Date of revision:
Note: Type of Document - pdf; pages: 10
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Skilled labour; unskilled labour; wage inequality; emigration (immigration) of labour; labour market imperfection; diverse trade pattern;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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