Can International Factor Mobility lessen Wage Inequality in a Dual Economy?
Sarbajit Chaudhuri () and
MPRA Paper from University Library of Munich, Germany
We introduce international labor mobility in a three-sector general equilibrium model with rural-urban migration. We demonstrate that under some reasonable conditions an inflow of foreign skilled labor (capital) can reduce skilled-unskilled wage inequality.
Keywords: Skilled-unskilled wage inequality; rural-urban migration; Unemployment; International factor movements (search for similar items in EconPapers)
JEL-codes: F21 F22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-lab and nep-mig
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Working Paper: Can international factor mobility lessen wage inequality in a dual economy? (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:2641
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