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Emigration, Finite Changes and Wage Inequality

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Abstract

Emigration leads to finite changes in structure of production and sectors vanish because they cannot pay higher wages. Does emigration of one type of labor hurt the other non-emigrating type in this set up? We demonstrate various scenarios when real incomes of the emigrating and the non-emigrating types do not move together. This generalizes some of the existing results in the literature. In particular, emigration can lead to a drastic change in the degree of inequality depending on which of the sectors survive in the post-emigration regime.

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  • Sugata Marjit & Saibal Kar, 2011. "Emigration, Finite Changes and Wage Inequality," Discussion Papers Series 423, School of Economics, University of Queensland, Australia.
  • Handle: RePEc:qld:uq2004:423
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    Cited by:

    1. Pi, Jiancai & Zhou, Yu & Yin, Jun, 2013. "International factor mobility, monopolistic competition, and wage inequality," Economic Modelling, Elsevier, vol. 33(C), pages 326-332.
    2. Pi, Jiancai & Zhang, Pengqing, 2017. "Foreign capital, pollution control, and wage inequality in developing countries," International Review of Economics & Finance, Elsevier, vol. 48(C), pages 280-288.
    3. Kar Saibal & Kar Mausumi, 2015. "Liberalized Trade Policy and Inequality: Evidence from Post-Multi-Fibre Arrangement India and Some Theoretical Issues," WIDER Working Paper Series 007, World Institute for Development Economic Research (UNU-WIDER).
    4. Marjit, Sugata & Mandal, Biswajit, 2014. "Finite Change – Implication for Trade Theory, Policy and Development," MPRA Paper 68228, University Library of Munich, Germany.
    5. Dutta, Meghna & Kar, Saibal & Marjit, Sugata, 2013. "Product variety, finite changes and wage inequality," Economic Modelling, Elsevier, vol. 35(C), pages 610-613.
    6. Sugata Marjit & Saibal Kar, 2013. "International Capital Flow, Vanishing Industries and Two-sided Wage Inequality," Pacific Economic Review, Wiley Blackwell, vol. 18(5), pages 574-583, December.

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