Emigration, Finite Changes and Wage Inequality
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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- Mishra, Prachi, 2007. "Emigration and wages in source countries: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 82(1), pages 180-199, January.
- Rivera-Batiz, Francisco L., 1989. "The impact of international migration on real wages : Another look," Journal of Development Economics, Elsevier, vol. 31(1), pages 185-192, July.
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