Article ID Journal Published Year Pages File Type
5062706 Economics Letters 2006 6 Pages PDF
Abstract

By making use of a simple general-equilibrium model that is relevant to a high-income developing country or a newly industrialised country, this paper examines the link between factor mobility and wage inequality. It is shown that, in the presence of specialisation-based external economies, emigration of skilled as well unskilled labour increases wage inequality even if the income shares of capital are identical across industries. On the other hand, outflow of capital decreases wage inequality.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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