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Wages, labour mobility and international trade

Kar, Saibal and Marjit, Sugata (2004): Wages, labour mobility and international trade. Published in: Globalization and the Developing Economies, Edited by Aditya Bhattacharjea and Sugata Marjit , New Delhi: Manohar (2004): pp. 135-156.


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This chapter is an extensive review of the existing literature on international migration of labour and its close interactions with international trade in goods and services. In addition, we provide a brief model to show that emigration of labour from a developing country has strong implications for the domestic skilled to unskilled wage movements. In fact, depending on intensity assumptions across sectors and emigration of skilled or unskilled workers, the wage gap may increase or decrease.

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