International migration of labour and skilled–unskilled wage inequality in a developing economy

Yabuuchi, Shigemi; Chaudhuri, Sarbajit

doi:10.1016/j.econmod.2006.06.006

Cited by 82 publications

(35 citation statements)

References 13 publications

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“…Moreover, the marginal impact of higher debt on welfare increases. Formally, analogously to (22), we can express long-run welfare (27) as a function of G, B, and the level of labor market integration, . Denote this function by W (G; B; ).…”

Section: Debt Financementioning

confidence: 99%

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Does international mobility of high-skilled workers aggravate between-country inequality?

Grossmann

Stadelmann

2011

Journal of Development Economics

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This paper analyzes the interaction of international migration of high-skilled labor and relative wage income between source and destination economies of expatriates. We develop an overlapping-generations model with increasing returns which suggests that international integration of the market for skilled labor aggravates between-country inequality by harming those which are source economies to begin with while bene…ting host economies. The result is robust to allowing governments to optimally adjust productivity-enhancing investments which could potentially attenuate brain drain. Optimal public investment tends to decrease in response to higher emigration.

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Section: Debt Financementioning

confidence: 99%

“…This is natural in our context where we emphasize productivity e¤ects of brain drain. See, for instance, Yabuuchi and Chaudhuri (2007) for a theoretical analysis of the e¤ects of migration on domestic wage inequality when education levels are exogenous. intermediate input j:…”

Section: Equilibrium Analysismentioning

confidence: 99%

Does international mobility of high-skilled workers aggravate between-country inequality?

Grossmann

Stadelmann

2011

Journal of Development Economics

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“…It is quite perplexing as to why the relative wage inequality has deteriorated, especially when as per the baseline 2×2×2 Heckscher-OhlinSamuelson trade model, economic liberalization was expected to improve the wage inequality in the developing economies following increases in the prices of the export commodities as these are generally exporters of commodities that are intensive in the use of unskilled labour. The scanty theoretical literature explaining the deteriorating wage inequality in the developing countries includes works of Feenstra and Hanson (1996), Yabuuchi and Chaudhuri (2007) and Marjit, Beladi and Chakrabarti (2004). They have shown how trade liberalization, international migration of labour and inflows of foreign capital might produce unfavourable effects on the wage inequality in the South given the specific structural characteristics of the less developed countries, such as features of labour markets, structures of production, nature of capital mobility etc.…”

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confidence: 99%

Foreign Capital and Skilled-Unskilled Wage Inequality in a Developing Economy with Non-Traded Goods

Chaudhuri

Yabuuchi

2007

SSRN Journal

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Abstract:The existing theoretical literature does not take into consideration the existence of non-traded goods and the nature of capital mobility between the traded and the nontraded sectors in analyzing the consequences of liberalized investment policies on the relative wage inequality in the developing countries. The present paper purports to fill in this gap using two four-sector general equilibrium models reasonable for a developing economy. We have found that inflows of foreign capital usually improve the wage inequality when the low-skill sector is capital-intensive. But, the relative wage gap may widen if the high-skill sector is capital-intensive. When the non-traded sector produces a non-traded final commodity wage inequality worsens if the low-skill sector is capitalintensive and employs only a very small proportion of the unskilled workforce and if the primary export sector is unskilled labour-intensive. Appropriate policy recommendations for improving the wage inequality have also been made. JEL classifications: F13, J31.

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“…Theoretically, the falling wage gap in the post reform period has been explained in the work of Feenstra and Hanson (1996), Marjit et al (2000), Marjit et al (2004), Marjit and Acharyya (2003), Chaudhuri and Yabuuchi (2007), and Yabuuchi and Chaudhuri (2007). Feenstra and Hanson (1996) have shown that an-inflow of foreign capital has led to the increased production of skilled intensive commodities in Mexico, thereby causing a falling demand for unskilled labor.…”

Section: Introductionmentioning

confidence: 99%

Endogenous Skill Formation: Labor Market Integration by an Immigration

Bandopadhyay¹,

Chaudhuri²

2013

JEI

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The paper fabricates endogenous skill formation in a two-sector general equilibrium model where the unemployment of the skilled workers is caused by efficiency wage. The paper also examines the effects of the immigration of unskilled labor, the emigration of skilled labor, and the inflow of foreign capital on unemployment, skilled-unskilled wage inequality, and the level of skill formation in each unskilled working family. We find that the immigration of unskilled labor raises both the rate and level of unemployment of the skilled labor and lowers both the relative skilled-unskilled wage inequality and the level of skill formation in each unskilled working family under certain conditions. However, the emigration of skilled labor or the inflow of foreign capital gives opposite results. JEL Classifications: F13, J41, J64, O15

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International migration of labour and skilled–unskilled wage inequality in a developing economy

Cited by 82 publications

References 13 publications

Does international mobility of high-skilled workers aggravate between-country inequality?

Does international mobility of high-skilled workers aggravate between-country inequality?

Foreign Capital and Skilled-Unskilled Wage Inequality in a Developing Economy with Non-Traded Goods

Endogenous Skill Formation: Labor Market Integration by an Immigration

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