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International Migration of Labour and Skilled-Unskilled Wage Inequality

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Author Info

  • Shigemi Yabuuchi

    (Nagoya City University, Japan)

  • Sarbajit Chaudhuri

    (Calcutta University, India)

Abstract

The 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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File URL: http://128.118.178.162/eps/it/papers/0510/0510007.pdf
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Bibliographic Info

Paper provided by EconWPA in its series International Trade with number 0510007.

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Length: 10 pages
Date of creation: 20 Oct 2005
Date of revision:
Handle: RePEc:wpa:wuwpit:0510007

Note: Type of Document - pdf; pages: 10
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Web page: http://128.118.178.162

Related research

Keywords: Skilled labour; unskilled labour; wage inequality; emigration (immigration) of labour; labour market imperfection; diverse trade pattern;

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References

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  1. Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," World Bank Economic Review, World Bank Group, vol. 11(1), pages 33-57, January.
  2. Robert C. Feenstra & Gordon H. Hanson, 1995. "Foreign Investment, Outsourcing and Relative Wages," NBER Working Papers 5121, National Bureau of Economic Research, Inc.
  3. Jones, Ronald W. & Peter Neary, J., 1984. "The positive theory of international trade," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 1, pages 1-62 Elsevier.
  4. Sugata Marjit & Hamid Beladi & Avik Chakrabarti, 2004. "Trade and Wage Inequality in Developing Countries," Economic Inquiry, Western Economic Association International, vol. 42(2), pages 295-303, April.
  5. Sarbajit Chaudhuri, 2003. "How and how far to liberalize a developing economy with informal sector and factor market distortions," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 12(4), pages 403-428.
  6. Marjit, Sugata & Kar, Saibal, 2005. "Emigration and wage inequality," Economics Letters, Elsevier, vol. 88(1), pages 141-145, July.
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Cited by:
  1. Chaudhuri, Sarbajit, 2010. "Economic recession, demand constraint and labour markets in a developing economy," MPRA Paper 27433, University Library of Munich, Germany.
  2. Chaudhuri, Sarbajit & Bandopadhyay, Titas Kumar, 2012. "Endogenous skill formation, foreign capital and education subsidy in a dual economy," MPRA Paper 41631, University Library of Munich, Germany.

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