INTERNATIONAL MIGRATION OF SKILLED LABOUR, WELFARE AND UNEMPLOYMENT OF UNSKILLED LABOUR: A NOTE

Sarbajit Chaudhuri ()

International Trade from EconWPA

Abstract: The present paper makes an attempt to examine theoretically the impact of emigration of skilled labour from developing countries on the level of welfare of the non-migrants and the level of urban unemployment of unskilled labour in a three sector Harris-Todaro model. The analysis suggests that in a reasonable production structure for a developing economy a brain drain of skilled labour raises urban unemployment of unskilled labour. The paper also shows that an emigration of skilled labour may raise the welfare of the non-migrants in a tariff-distorted economy if it imports the specialized manufacturing product or the labour-intensive good. However, if the economy imports the traditional manufacturing product, the welfare of the non-emigrating workers is likely to deteriorate.

Keywords: Emigration of skilled labour; unskilled labour; Harris-Todaro framework; welfare of the non-migrants; urban unemployment (search for similar items in EconPapers)
JEL-codes: F2 F F22 J64 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu, nep-hrm and nep-ure
Date: 2005-11-11
Note: Type of Document - pdf; pages: 11
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpit:0511007

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