Wages, Labour Mobility and International Trade

GLOBALIZATION AND THE DEVELOPING ECONOMIES, Aditya Bhattacharjea, Sugata Marjit, eds., pp. 135-156, Manohar Publishers, 2004

33 Pages Posted: 16 Jan 2008

See all articles by Saibal Kar

Saibal Kar

Centre for Studies in Social Sciences, Calcutta; Institute of Labor Economics (IZA)

Sugata Marjit

Centre for Studies in Social Sciences, Calcutta; City University of Hong Kong (CityUHK) - Department of Economics & Finance

Abstract

This paper provides a detailed survey on the literature on trade and migration. We discuss several aspects on international mobility of labor with heterogeneous skill types and relate that to the movement of goods and services between nations, as also the issue of welfare and capital formation in the source countries. Further, we look at the implications of labor emigration from a small open economy on pre-existing wage-gap between the skilled and the unskilled. We show that the unskilled emigration may worsen the wage-gap, whereas skill emigration can reduce wage inequality, although absolute wages increase with emigration.

Keywords: Skilled labor, Emigration, Income share, Wage inequality

JEL Classification: F22, J31, O15

Suggested Citation

Kar, Saibal and Marjit, Sugata, Wages, Labour Mobility and International Trade. GLOBALIZATION AND THE DEVELOPING ECONOMIES, Aditya Bhattacharjea, Sugata Marjit, eds., pp. 135-156, Manohar Publishers, 2004. Available at SSRN: https://ssrn.com/abstract=1084413

Saibal Kar (Contact Author)

Centre for Studies in Social Sciences, Calcutta ( email )

R-1, Baishnabghata Patuli Township
Calcutta, 700 094
India
91-33-2462 7252 (Phone)
91-33-2462 6183 (Fax)

HOME PAGE: http://www.cssscal.org

Institute of Labor Economics (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Sugata Marjit

Centre for Studies in Social Sciences, Calcutta ( email )

R 1, B.P. Township
Kolkata, West Bengal, India
Kolkata, West Bengal 700094
India

City University of Hong Kong (CityUHK) - Department of Economics & Finance ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

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