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Skilled Worker Migration and Trade: Inequality and Welfare

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  • Spiros Bougheas
  • Douglas R. Nelson

Abstract

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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Suggested Citation

  • Spiros Bougheas & Douglas R. Nelson, 2012. "Skilled Worker Migration and Trade: Inequality and Welfare," The World Economy, Wiley Blackwell, vol. 35(2), pages 197-215, February.
  • Handle: RePEc:bla:worlde:v:35:y:2012:i:2:p:197-215
    DOI: j.1467-9701.2011.01428.x
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    References listed on IDEAS

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    Cited by:

    1. Martyn Andrews & Thorsten Schank & Richard Upward, 2017. "Do foreign workers reduce trade barriers? Microeconomic evidence," The World Economy, Wiley Blackwell, vol. 40(9), pages 1750-1774, September.
    2. Hatzigeorgiou, Andreas & Lodefalk, Magnus, 2016. "The Brexit Trade Disruption Revisited," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 0(Number 1), pages 1-18.
    3. repec:oup:ajagec:v:99:y:2017:i:4:p:847-871. is not listed on IDEAS
    4. Magrini, Emiliano & Montalbano, Pierluigi & Nenci, Silvia & Salvatici, Luca, 2014. "Agricultural trade distortions during recent international price spikes: what implications for food security?," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182726, European Association of Agricultural Economists.
    5. Magnus Lodefalk, 2016. "Temporary expats for exports: micro-level evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(4), pages 733-772, November.
    6. Udo Kreickemeier & Jens Wrona, 2017. "Two-Way Migration between Similar Countries," The World Economy, Wiley Blackwell, vol. 40(1), pages 182-206, January.
    7. Bougheas, Spiros & Nelson, Doug, 2013. "On the political economy of high skilled migration and international trade," European Economic Review, Elsevier, vol. 63(C), pages 206-224.
    8. Giorgia Giovannetti & Mauro Lonati, 2014. "The impact of product quality on the pro-trade elasticity of immigrants," Working Papers - Economics wp2014_11.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    9. Hatzigeorgiou, Andreas & Lodefalk, Magnus, 2015. "The Role of Foreign Networks for Firm Export of Services," Working Papers 2015:6, Örebro University, School of Business.
    10. Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci & Luca Salvatici, 2017. "Agricultural (Dis)Incentives and Food Security: Is There a Link?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(4), pages 847-871.
    11. TOMOHARA Akinori, 2017. "Do Migrant and Business Networks Promote International Royalty Receipts?," Discussion papers 17006, Research Institute of Economy, Trade and Industry (RIETI).
    12. Hatzigeorgiou, Andreas & Karpaty, Patrik & Kneller, Richard & Lodefalk, Magnus, 2016. "Do Immigrants Spur Offshoring? Firm-Level Evidence," Ratio Working Papers 282, The Ratio Institute.

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    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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