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Skilled Worker Migration and Trade: Inequality and Welfare

  • Spiros Bougheas
  • Douglas R. Nelson

We develop a two-sector, two-country model where trade is driven by technological differences. Each country is populated by large number of heterogeneous workers distinguished by their level of skills. Given that one country has a technological advantage in the skilled intensive good when we allow for both trade and migration skilled workers migrate to that country. We analyze the consequences of this migration for both inequality and welfare for the source and the host country.

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File URL: http://hdl.handle.net/10.1111/j.1467-9701.2011.01428.x
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Article provided by Wiley Blackwell in its journal The World Economy.

Volume (Year): 35 (2012)
Issue (Month): 2 (02)
Pages: 197-215

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Handle: RePEc:bla:worlde:v:35:y:2012:i:2:p:197-215
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  18. Iranzo, Susana & Peri, Giovanni, 2009. "Migration and trade: Theory with an Application to the Eastern- Western European Integration," Working Papers 2072/42865, Universitat Rovira i Virgili, Department of Economics.
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