Skilled Worker Migration and Trade: Inequality and Welfare

Bougheas, Spiros; Nelson, Douglas

Skilled Worker Migration and Trade: Inequality and Welfare

CESifo Working Paper Series No. 3282

20 Pages Posted: 26 Dec 2010

See all articles by Spiros Bougheas

Spiros Bougheas

University of Nottingham - School of Economics

Douglas Nelson

Tulane University - Department of Economics

There are 3 versions of this paper

Date Written: December 23, 2010

Abstract

We develop a two-sector, two-country model where trade is driven by technological differences. Each country is populated by large number of heterogeneous workers distinguished by their level of skills. Given that one country has a technological advantage in the skilled intensive good when we allow for both trade and migration skilled workers migrate to that country. We analyze the consequences of this migration for both inequality and welfare for the source and the host country.

Keywords: skilled labor, migration, welfare, political economy

JEL Classification: F22

Suggested Citation: Suggested Citation

Bougheas, Spiros and Nelson, Douglas R., Skilled Worker Migration and Trade: Inequality and Welfare (December 23, 2010). CESifo Working Paper Series No. 3282. Available at SSRN: https://ssrn.com/abstract=1730083