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Emigration and Wage Inequality

In: Mediterranean Labor Markets in the First Age of Globalization

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  • Paul Caruana Galizia

Abstract

Did emigration from the Mediterranean decrease real wage inequality? We saw in chapter 5 that commodity market integration can lead to international real wage convergence. In other words, it can explain a portion of the decline in wage inequalities between countries when factor mobility, or migration, is low. Though Mediterranean emigration to the New World was indeed lower than what we would have expected it to be, as we have seen in chapter 4, this does not mean it had no impact whatsoever on the Mediterranean. Further, there is migration within the Mediterranean to consider. In this chapter, I show that countries that exported the most workers (i.e., the factor rather than the commodity) had the lowest within-country real wage inequality levels.1 For an explanation, we can once again turn to Heckscher-Ohlin theory.

Suggested Citation

  • Paul Caruana Galizia, 2015. "Emigration and Wage Inequality," Palgrave Macmillan Books, in: Mediterranean Labor Markets in the First Age of Globalization, chapter 0, pages 85-110, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-40084-0_6
    DOI: 10.1057/9781137400840_6
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