Munich Personal RePEc Archive

Emigration, Wage Inequality and Vanishing Sectors

Marjit, Sugata and Kar, Saibal (2009): Emigration, Wage Inequality and Vanishing Sectors.

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Emigration leads to finite changes in structure of production and sectors vanish because they cannot pay higher wages. Does emigration of one type of labor hurt the other non-emigrating type in this set up? We demonstrate various scenarios when real income of the emigrating and the non-emigrating type do not move together and in the process generalize some of the existing results in the literature. In particular emigration can lead to a drastic change in the degree of inequality depending on which sectors survive in the post-emigration scenario.

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