Migration, the Quality of the Labour Force and Economic Inequality
29 Pages Posted: 30 Jun 2009
Date Written: April 2008
Mobility of workers involves flows of labour, human capital and other production factors and thus contributes to a more efficient allocation of resources. Besides these effects on allocative efficiency, migrant flows affect relative wages and also change the international and national distribution of skills and thereby equality in the receiving society. This paper suggests that skilled immigration promotes economic equality in advanced economies under standard conditions. The context is theoretically explained in a core model and empirically documented using unique data from the WIID database and OECD.
Keywords: Inequality, income distribution, human capital, skill allocation, migration, ethnicity, minority, Gini-coefficient
JEL Classification: D33, E25, F22, J15, J61, O15
Suggested Citation: Suggested Citation