Skilled Worker Migration and Trade: Inequality and Welfare

19 Pages Posted: 18 Feb 2012

See all articles by Spiros Bougheas

Spiros Bougheas

University of Nottingham - School of Economics

Douglas Nelson

Tulane University - Department of Economics

Multiple version iconThere are 3 versions of this paper

Date Written: February 2012

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 analyse the consequences of this migration for both inequality and welfare for the source and the host country.

Suggested Citation

Bougheas, Spiros and Nelson, Douglas R., Skilled Worker Migration and Trade: Inequality and Welfare (February 2012). The World Economy, Vol. 35, Issue 2, pp. 197-215, 2012. Available at SSRN: https://ssrn.com/abstract=2007376 or http://dx.doi.org/10.1111/j.1467-9701.2011.01428.x

Spiros Bougheas (Contact Author)

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom

Douglas R. Nelson

Tulane University - Department of Economics ( email )

New Orleans, LA 70118
United States

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