EconPapers    
Economics at your fingertips  
 

International Migration of Skilled and Unskilled Labour, Welfare and Skilled-unskilled Wage Inequality: a Simple Model

Sarbajit Chaudhuri ()

Journal of Economic Integration, 2004, vol. 19, 726-741

Abstract: The paper shows that in a reasonable production structure for a developing economy a brain drain of skilled labour may raise the welfare of the economy while an emigration of unskilled labour is welfare reducing. Also an emigration of skilled/unskilled labour lowers the urban unemployment of unskilled labour and widens the skilled-unskilled wage-gap. The paper provides an alternative explanation for the increasing wage inequality in many less developed countries in the regime of liberalized trade and investment in terms of higher international mobility of skilled and unskilled labour during this period using a Harris-Todaro (1970) framework where the central principle of the Stolper-Samuelson theorem holds.

Keywords: skilled labour; unskilled labour; emigration of labour; welfare; urban unemployment; skilled-unskilled wage gap (search for similar items in EconPapers)
JEL-codes: F20 F20 F22 (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: INTERNATIONAL MIGRATION OF SKILLED AND UNSKILLED LABOUR, WELFARE AND SKILLED-UNSKILLED WAGE INEQUALITY: A SIMPLE MODEL (2005) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0287

Access Statistics for this article

Journal of Economic Integration is currently edited by Jong-Eun Lee

More articles in Journal of Economic Integration from Center for Economic Integration, Sejong University Contact information at EDIRC.
Bibliographic data for series maintained by Jong-Eun Lee ().

 
Page updated 2019-12-06
Handle: RePEc:ris:integr:0287