Trade, migration costs and asymmetric migration patterns

Rajat Acharyya, Hamid Beladi and Saibal Kar ()

The World Economy, 2019, vol. 42, issue 9, 2629-2648

Abstract: Increase in trade has an asymmetric impact on emigration by skill types for a developing country. Cost of migration is a dynamic function of the type of emigration, and it determines a complementary relation between emigration of skilled workers and expansion of trade. Emigration of unskilled workers is a substitute, however, and these outcomes coexist with endogenously determined emigration rates that depend crucially on wage responses among the own skill types at the source. Additionally, asymmetric emigration patterns increase wage inequality.

Date: 2019
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