IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Employment Effects of International Factor Mobility : A Theoretical Approach with Heterogenous Labor

Listed author(s):
  • Gries , Thomas


    (University of Paderborn)

  • Jungblut, Stefan

    (University of Paderborn)

In many countries the difference in labor market performance for skilled and unskilled workers has increased over the past decades. While an extended literature exists on the employment effects of trade, less is known about the effects of factor mobility. Based on the “labor market flow approach”, we develop a model of persistent structural unemployment for skilled and unskilled workers. Within this model the effects of capital mobility and migration are analyzed. Given that real and human capital are complements we find that skilled and unskilled worker will both gain from capital inflows. Within each labor market segment, the effects of labor inflows is always negative. The cross effects of labor infows, however, are non-symmetrical: On the one hand, an inflow of unskilled labor negatively affects the unskilled segment, but will not affect the unemployment rate of skilled workers. On the other hand, an inflow of skilled labor will always negatively affect the unemployment rate in both segments of the labor market. If policy makers would like to avoid these effect, the number of unskilled must simultaneously be decreased, the rate of internal real capital accumulation must be increased or real and human capital must be imported as a bundle.

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Article provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.

Volume (Year): 22 (2007)
Issue (Month): ()
Pages: 339-368

in new window

Handle: RePEc:ris:integr:0397
Contact details of provider: Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ris:integr:0397. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jong-Eun Lee)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.