Inflow of labour, producer services and wage inequality

Jingjing Zhang

Economics Letters, 2012, vol. 117, issue 3, 600-603

Abstract: This paper examines the issue of skilled–unskilled wage inequality in the shortrun when varieties of producer services are traded. It is shown that, irrespective of the relative size of income share of capital, inflow of neither skilled nor unskilled labour affects skilled–unskilled wage inequality. However, an increase in (i) the level of competition in the services sector and (ii) relative price of the varieties of producer services can affect the level of wage inequality.

Keywords: Globalisation; Labour mobility; Product varieties; Monopolistic competition; Skilled–unskilled wage inequality (search for similar items in EconPapers)
JEL-codes: F22 J31 O24 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:117:y:2012:i:3:p:600-603

DOI: 10.1016/j.econlet.2012.07.032

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