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Wage inequality, welfare and downsizing

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  • Anwar, Sajid

Abstract

By making use of a simple model that does not explicitly include capital, this paper examines the impact of downsizing on skilled-unskilled wage inequality and welfare. The paper shows that downsizing increases wage inequality and its effect on welfare is positive but the relative well-being of the unskilled workers declines.

Suggested Citation

  • Anwar, Sajid, 2009. "Wage inequality, welfare and downsizing," Economics Letters, Elsevier, vol. 103(2), pages 75-77, May.
    • Handle: RePEc:eee:ecolet:v:103:y:2009:i:2:p:75-77
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    References listed on IDEAS

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    1. Davis, Donald R., 1998. "Technology, unemployment, and relative wages in a global economy," European Economic Review, Elsevier, vol. 42(9), pages 1613-1633, November.
    2. Anwar, Sajid, 2006. "Factor mobility and wage inequality in the presence of specialisation-based external economies," Economics Letters, Elsevier, vol. 93(1), pages 88-93, October.
    3. Marjit, Sugata & Kar, Saibal, 2005. "Emigration and wage inequality," Economics Letters, Elsevier, vol. 88(1), pages 141-145, July.
    4. Satya P. Das, 2005. "Gradual globalization and inequality between and within countries," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(3), pages 852-869, August.
    5. Satya Das, 2005. "Gradual globalization and inequality between and within countries," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 852-869, August.
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    Citations

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    Cited by:

    1. Gupta Manash Ranjan & Dutta Priya Brata, 2014. "Skilled-Unskilled Wage Inequality, Growth of Skilled Labour and Development Policies," Journal of Globalization and Development, De Gruyter, vol. 5(1), pages 103-128, June.
    2. Marjit, Sugata & Kar, Saibal, 2009. "Emigration, Wage Inequality and Vanishing Sectors," MPRA Paper 19354, University Library of Munich, Germany.
    3. Jiancai Pi & Shuning Li, 2022. "Managerial Delegation and Wage Inequality," Annals of Economics and Finance, Society for AEF, vol. 23(1), pages 141-157, May.
    4. Zhang, Jingjing, 2012. "Inflow of labour, producer services and wage inequality," Economics Letters, Elsevier, vol. 117(3), pages 600-603.
    5. Beladi, Hamid & Chao, Chi-Chur, 2010. "Downsizing, wage inequality and welfare in a developing economy," Research in Economics, Elsevier, vol. 64(4), pages 224-228, December.
    6. Zhang, Jingjing, 2015. "International factor mobility, elasticity of substitution in production and the skilled–unskilled wage gap," International Review of Economics & Finance, Elsevier, vol. 35(C), pages 122-129.
    7. 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.
    8. Jiancai Pi & Xiangyu Huang, 2021. "Product Variety and Wage Inequality," Annals of Economics and Finance, Society for AEF, vol. 22(1), pages 135-151, May.
    9. Manash Ranjan Gupta & Priya Brata Dutta, 2018. "Skilled-unskilled wage inequality and structural transformation in a dual economy," Indian Economic Review, Springer, vol. 53(1), pages 311-332, December.
    10. Das, Gouranga, 2012. "Trans-border Land Acquisitions:A New Guise of Outsourcing and Host Country Effects," MPRA Paper 40651, University Library of Munich, Germany.
    11. Gouranga Das, 2009. "A hybrid production structure in trade: theory and implications," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 56(4), pages 359-375, December.
    12. Zhang, Jingjing, 2013. "Factor mobility and skilled–unskilled wage inequality in the presence of internationally traded product varieties," Economic Modelling, Elsevier, vol. 30(C), pages 579-585.
    13. Anwar, Sajid & Sun, Sizhong, 2012. "Trade liberalisation, market competition and wage inequality in China's manufacturing sector," Economic Modelling, Elsevier, vol. 29(4), pages 1268-1277.
    14. Hamid Beladi & Chi-chur Chao & Daniel Hollas, 2011. "Fair wages, Urban Unemployment and Welfare in a Developing Economy," Economics Bulletin, AccessEcon, vol. 31(1), pages 273-285.
    15. Das, Gouranga, 2012. "Trans-border Land Acquisitions: A New Guise of Outsourcing and Host Country Effects," WIDER Working Paper Series 043, World Institute for Development Economic Research (UNU-WIDER).
    16. Gupta, Manash Ranjan & Dutta, Priya Brata, 2012. "Skilled–unskilled wage inequality, product variety, public input and increasing returns: A static general equilibrium analysis," Economic Modelling, Elsevier, vol. 29(2), pages 502-513.
    17. Gupta, Manash Ranjan & Dutta, Priya Brata, 2011. "Skilled-unskilled wage inequality and unemployment: A general equilibrium analysis," Economic Modelling, Elsevier, vol. 28(4), pages 1977-1983, July.
    18. Priya Brata Dutta, 2014. "Skilled-unskilled wage inequality, product variety and unemployment: A static general equilibrium analysis," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(1), pages 31-55, February.

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