Can International Factor Mobility lessen Wage Inequality in a Dual Economy?
We introduce international labor mobility in a three-sector general equilibrium model with rural-urban migration. We demonstrate that under some reasonable conditions an inflow of foreign skilled labor (capital) can reduce skilled-unskilled wage inequality.
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"Foreign Investment, Outsourcing and Relative Wages,"
Department of Economics
95-14, California Davis - Department of Economics.
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