Global Wage Inequality and the International Flow of Migrants

32 Pages Posted: 21 Jan 2010

See all articles by Mark R. Rosenzweig

Mark R. Rosenzweig

Yale University - Economic Growth Center; Yale University - Cowles Foundation

Date Written: January 20, 2010


A framework for understanding the determinants in the variation in the pricing of skills across countries and the model underlying the Mincer specification of wages that is used widely to estimate the relationship between schooling and wages are described. A method for identifying skill prices and for testing the Mincer model, using wages and the human capital attributes of workers located around the world, is discussed. A global wage equation that nests the Mincer specification is estimated that provides skill price estimates for 140 countries. The estimates reject the Mincer model. The skill price estimates indicate that variation in skill prices dominates the cross-country variation in schooling levels or rates of return to schooling in accounting for the global inequality in the earnings of workers worldwide. Variation in skill prices and GDP across countries has opposite and significant effects on the number and quality of migrants to the United States.

Keywords: Wage, skill price, international migration, inequality

JEL Classification: J31, J61

Suggested Citation

Rosenzweig, Mark Richard, Global Wage Inequality and the International Flow of Migrants (January 20, 2010). Yale University Economic Growth Center Discussion Paper No. 983, Yale Economics Department Working Paper No. 77, Available at SSRN: or

Mark Richard Rosenzweig (Contact Author)

Yale University - Economic Growth Center ( email )

Box 208269
New Haven, CT 06520-8269
United States
203-432-3620 (Phone)

Yale University - Cowles Foundation

Box 208281
New Haven, CT 06520-8281
United States

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