Factor Migration and Income Distribution in Some Developing Countries

Don Clark and Henry Thompson

Bulletin of Economic Research, 1990, vol. 42, issue 2, 131-40

Abstract: A three factor, two sector general equilibrium model is used to determine long run income distributional impacts of factor supply changes associated with international migration in developing and newly industrializing countries. Factor intensity rankings among three factors (capital, skilled and unskilled labor) between two industries (agriculture and manufacturing-services) play a critical role in determining which factors are natural friends with respect to migration. A result common to all countries is observed friendship between capital and unskilled labor: reducing (increasing) the supply of one will lower (raise) payments to the other. Copyright 1990 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Date: 1990
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