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Factor Mobility and Wage Inequality

In: International Trade and Economic Dynamics

Author

Listed:
  • Masao Oda

    (Ritsumeikan University)

  • Robert Stapp

    (University of Arkansas)

Abstract

This chapter provides a model to analyze the effects of factor mobility on wage inequality and considers a condition under which an inflow of factors into the US could generate wage inequality in favor of skilled labor. It is shown that the factor intensity and the degree of factor mobility play crucial roles in generating wage inequality. Furthermore, we demonstrate that the conventional wisdom concerning the wage gap no longer holds when capital is mobile.

Suggested Citation

  • Masao Oda & Robert Stapp, 2009. "Factor Mobility and Wage Inequality," Springer Books, in: Takashi Kamihigashi & Laixun Zhao (ed.), International Trade and Economic Dynamics, pages 63-72, Springer.
  • Handle: RePEc:spr:sprchp:978-3-540-78676-4_8
    DOI: 10.1007/978-3-540-78676-4_8
    as

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