Emigration, Finite Changes and Wage Inequality

Sugata Marjit and Saibal Kar ()

No 423, Discussion Papers Series from University of Queensland, School of Economics

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.

Date: 2011
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Related works:
Journal Article: Emigration, Finite Changes and Wage Inequality (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:qld:uq2004:423

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