Can International Factor Mobility Lessen Wage Inequality in a Dual Economy?
University of Texas at San Antonio - College of Business - Department of Economics
University of Calcutta
Nagoya City University - Department of Economics
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.
Number of Pages in PDF File: 15
Keywords: Skilled-unskilled wage inequality, rural-urban migration, Unemployment, International factor movements
JEL Classification: F16, F22, O18working papers series
Date posted: April 26, 2007
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