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Emigration, Wage Inequality and Vanishing Sectors

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  • Sugata Marjit
  • Saibal Kar

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 labour hurt the other non-emigrating type in this set up? We demonstrate various scenarios when real income of the emigrating and the non-emigrating type do not move together and in the process generalize 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 sectors survive in the post-emigration scenario.

Suggested Citation

  • Sugata Marjit & Saibal Kar, 2009. "Emigration, Wage Inequality and Vanishing Sectors," Discussion Papers 09/20, University of Nottingham, GEP.
    • Handle: RePEc:not:notgep:09/20
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    Cited by:

    1. Toru Kikuchi & Sugata Marjit & Biswajit Mandal, 2013. "Trade with Time Zone Differences: Factor Market Implications," Review of Development Economics, Wiley Blackwell, vol. 17(4), pages 699-711, November.
    2. Chatterjee, Tonmoy & Gupta, Kausik, 2014. "Health Care Quality vs Health Care Quantity: A General Equilibrium Analysis," MPRA Paper 57314, University Library of Munich, Germany.
    3. Biswajit Mandal & Arya Roy Bardhan & Saswati Chaudhuri, 2024. "Controlling Environmental Pollution, Sectoral Composition and Factor Prices: A H–O and SFM Hybrid Approach," Contributions to Economics, in: Sugata Marjit & Biswajit Mandal (ed.), International Trade, Resource Mobility and Adjustments in a Changing World, chapter 0, pages 259-291, Springer.
    4. Chatterjee, Tonmoy & Gupta, Kausik, 2013. "International Fragmentation in the Presence of Alternative Health Sector Scenario : A Theoretical Analysis," MPRA Paper 48559, University Library of Munich, Germany.
    5. Chatterjee, Tonmoy & Gupta, Kausik, 2013. "Mobility of Capital and Health Sector:A Trade Theoretic Analysis," MPRA Paper 48557, University Library of Munich, Germany.

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    More about this item

    Keywords

    Skill; emigration; wages; inequality; reallocation;
    All these keywords.

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • F2 - International Economics - - International Factor Movements and International Business
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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