INTERNATIONAL MIGRATION OF SKILLED LABOUR, WELFARE AND UNEMPLOYMENT OF UNSKILLED LABOUR: A NOTE
Sarbajit Chaudhuri ()
International Trade from EconWPA
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
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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