Can International Factor Mobility lessen Wage Inequality in a Dual Economy?

Beladi, Hamid and Chaudhuri, Sarbajit and Yabuuchi, Shigemi (2007): Can International Factor Mobility lessen Wage Inequality in a Dual Economy?

Abstract

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.

• Item Type: MPRA Paper
• Institution: University of Calcutta
• Language: English
• Keywords: Skilled-unskilled wage inequality; rural-urban migration; Unemployment; International factor movements
• Subjects: F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements; F - International Economics > F2 - International Factor Movements and International Business > F22 - International Migration

References

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