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An economic analysis of remittance of unskilled migration on skilled–unskilled wage inequality in labor host region

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  • Li, Xiaochun
  • Zhou, Yu

Abstract

The present paper establishes a two-sector general equilibrium model and conduct the comparative static approach to investigate the impact exerted by an increase in the remittance rate of the unskilled migrants on the skilled–unskilled wage inequality in the labor host region. We find that the unskilled migrants increase their remittance rate to the labor outsourcing regions that will decrease the skilled–unskilled wage inequality in the labor host region.

Suggested Citation

  • Li, Xiaochun & Zhou, Yu, 2013. "An economic analysis of remittance of unskilled migration on skilled–unskilled wage inequality in labor host region," Economic Modelling, Elsevier, vol. 33(C), pages 428-432.
    • Handle: RePEc:eee:ecmode:v:33:y:2013:i:c:p:428-432
    DOI: 10.1016/j.econmod.2013.04.034
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    Cited by:

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    2. Sun, Sizhong & Anwar, Sajid, 2015. "Taxation of labour, product varieties and skilled–unskilled wage inequality: Short run versus long run," International Review of Economics & Finance, Elsevier, vol. 38(C), pages 250-257.
    3. Hayot Berk Saydaliev & Lee Chin, 2023. "The necessity of social infrastructure for enhancing educational attainment: evidence from high remittance recipient LMICs," Economic Change and Restructuring, Springer, vol. 56(3), pages 1823-1847, June.
    4. Xiaochun Li & Dianshuang Wang, 2015. "The impacts of rural–urban migrants’ remittances on the urban economy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(2), pages 591-603, March.
    5. Azizi, SeyedSoroosh, 2018. "The impacts of workers' remittances on human capital and labor supply in developing countries," Economic Modelling, Elsevier, vol. 75(C), pages 377-396.
    6. Dianshuang Wang & Xiaochun Li, 2022. "Capital market distortion, agricultural producer service and wage inequality in the small-scale agriculture," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(2), pages 391-409, October.
    7. Li, Xiaochun & Zhou, Jing, 2015. "Environmental effects of remittance of rural–urban migrant," Economic Modelling, Elsevier, vol. 47(C), pages 174-179.
    8. Sunday Osahon Igbinedion & Clement Atewe Ighodaro, 2019. "Migrants’ Remittances And Public Expenditure On Education Nexus: Evidence From An Oil-Dependent Economy," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 4(2), pages 112-127, September.
    9. Zhang, Jingjing & Leoncini, Riccardo & Tsai, Yingyi, 2018. "Intellectual property rights protection, labour mobility and wage inequality," Economic Modelling, Elsevier, vol. 70(C), pages 239-244.
    10. Anwar, Sajid & Sun, Sizhong, 2015. "Taxation of labour income and the skilled–unskilled wage inequality," Economic Modelling, Elsevier, vol. 47(C), pages 18-22.
    11. Yunyun Wu & Xiaochun Li, 2020. "Rural-urban migrants' remittances and wage inequality: Evidence from China," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(3), pages 129-139.

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    More about this item

    Keywords

    Unskilled migrants; Remittance; Skilled–unskilled wage inequality; Labor host region;
    All these keywords.

    JEL classification:

    • J - Labor and Demographic Economics
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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