INTERNATIONAL MIGRATION OF SKILLED AND UNSKILLED LABOUR, WELFARE AND SKILLED-UNSKILLED WAGE INEQUALITY: A SIMPLE MODEL
Sarbajit Chaudhuri ()
International Trade from University Library of Munich, Germany
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: F2 F20 F22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Note: Type of Document - pdf; pages: 14
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (6) Track citations by RSS feed
Downloads: (external link)
Journal Article: International Migration of Skilled and Unskilled Labour, Welfare and Skilled-unskilled Wage Inequality: a Simple Model (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpit:0510011
Access Statistics for this paper
More papers in International Trade from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ().