Product Variety, Finite Changes and Wage Inequality

Dutta, M., Kar, S., and Marjit, S., (2013), "Product variety, finite changes and wage inequality", Economic Modelling 35 (2013) 610–613

Posted: 12 Apr 2019

See all articles by Meghna Dutta

Meghna Dutta

Indian Institute of Technology, Patna

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

Date Written: March 19, 2019

Abstract

This paper presents a model with product variety to examine the effects of emigration and capital mobility between the North and the South on production reorganization and two-sided wage inequality.We obtain conditions under which the production patterns in both North and South undergo ‘finite changes’. Overall, the production and trade patterns may be such that the South produces and exports a homogeneous good while the North, a commodity with varieties — the result driven not by technological changes, but by factor mobility. The results further suggest that the wage inequality rises in both countries in conformity with available empirical evidence.

Keywords: Product variety, Factor mobility, Finite changes, Wage inequality, Trade patterns

JEL Classification: F2, J31, L2

Suggested Citation

Dutta, Meghna and Kar, Saibal and Marjit, Sugata, Product Variety, Finite Changes and Wage Inequality (March 19, 2019). Dutta, M., Kar, S., and Marjit, S., (2013), "Product variety, finite changes and wage inequality", Economic Modelling 35 (2013) 610–613. Available at SSRN: https://ssrn.com/abstract=3355166

Meghna Dutta (Contact Author)

Indian Institute of Technology, Patna ( email )

Room 515, Block 6
IIT Patna, Bihta
Patna, Bihar 801103
India

HOME PAGE: http://www.iitp.ac.in

Saibal Kar

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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