Factor Mobility and Wage Inequality

Masao Oda () and Robert Stapp ()
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Masao Oda: Ritsumeikan University
Robert Stapp: University of Arkansas

A chapter in International Trade and Economic Dynamics, 2009, pp 63-72 from Springer

Abstract: This chapter provides a model to analyze the effects of factor mobility on wage inequality and considers a condition under which an inflow of factors into the US could generate wage inequality in favor of skilled labor. It is shown that the factor intensity and the degree of factor mobility play crucial roles in generating wage inequality. Furthermore, we demonstrate that the conventional wisdom concerning the wage gap no longer holds when capital is mobile.

Keywords: Home Country; Wage Rate; Skilled Labor; Conventional Wisdom; Labor Mobility (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-540-78676-4_8

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DOI: 10.1007/978-3-540-78676-4_8

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