International factor mobility, environmental pollution and skilled–unskilled wage inequality in developing countries

Lijun Pan and Yu Zhou

Economic Modelling, 2013, vol. 33, issue C, 826-831

Abstract: This paper establishes a static three-sector general equilibrium model by accommodating environmental pollution to investigate the impact exerted by skilled immigrants and foreign direct investment on the skilled–unskilled wage inequality. Environment is treated as an input for agricultural production. The production process of the urban low-skill sector generates environmental pollution, which deteriorates the rural environment and thereby influences agricultural production. The present paper highlights the role of environmental pollution in the determination of the skilled–unskilled wage inequality due to skilled immigrants and foreign direct investment.

Keywords: Skilled immigrants; Foreign direct investment; Environmental pollution; Skilled–unskilled wage inequality (search for similar items in EconPapers)
JEL-codes: F2 J31 Q56 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:33:y:2013:i:c:p:826-831

DOI: 10.1016/j.econmod.2013.06.013

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