The Substitutability of Emigrants and Non-migrants in the Construction Sector of Pakistan

Zafar Mahmood ()

The Pakistan Development Review, 1990, vol. 29, issue 2, 123-136

Abstract: To predict the impact of emigration on labour displacement and factor rewards, a translogarithmic production function has been used. The estimation determined that unskilled emigrants and skilled and unskilled non-migrants have a complementarity with capital. While skilled emigrants and capital are substitutes, they are complementary with unskilled non-migrants. Based on these results, the model predicts displacement of unskilled non-migrants in the short run. Long-run predictions include an increase in wages of all kinds of workers and the adoption of capital-intensive techniques.

Date: 1990
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