International Labour Migrations and the Pseudoconvergence of National Living Standards

Harry Clarke

The Economic Record, 1997, vol. 73, issue 221, 120-124

Abstract: International labour immigrations between competitive economies promote divergence in international living standards though conventional per capita income measures suggest convergence. Observed convergence due to such immigrations is therefore a pseudoconvergence. Pseudoconvergence arises regardless of good and productive factor numbers but need not arise if competitive imperfections arise from increasing returns or sticky real wages.

Date: 1997
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