Register  |  Login  |  Inquiries  |  Sitemap
Advanced Search
Journal of Economic Integration 2013 March;28(1) :183-200.
DOI: https://doi.org/10.11130/jei.2013.28.1.183
Endogenous Skill Formation: Labor Market Integration by an Immigration
Titas Kumar Bandopadhyay and 
Sarbajit Chaudhuri 
Bagnan College, West Bangal, India
University of Calcutta, Kolkata, India
Corresponding Author: Titas Kumar Bandopadhyay ,Tel: +974 8109161, Email: titasban1@yahoo.in
Copyright ©2013 Journal of Economic Integration
ABSTRACT
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 Classification
F13: Trade Policy; International Trade Organizations
J41: Labor Contracts
J64: Unemployment: Models, Duration, Incidence, and Job Search
O15: Human Resources; Human Development; Income Distribution; Migration
Keywords: Skill Formation | Wage Inequality | Unemployment | Skilled Labor
 
REFERENCE
1. Beladi, H. , Chaudhuri, S. , Yabuuchi, S. (2008) Can International Factor Mobility Reduce Wage Inequality in a Dual Economy?, Review of International Economics, 16, 893-903.
2. Chaudhuri, S. and Yabuuchi, S. (2007) Economic Liberalisation and Wage Inequality in the Presence of Labour Market Imperfectio, International Review of Economics and Finance, 16(4), 592-603.
3. Chaudhuri, S. (2008) Wage Inequality in a Dual Economy and International Mobility of Factors: Do Factor Intensities Always Matter?, Economic Modelling, Elsevier, 25(6), 1155-1164.
4. Feenstra, R.C., Hanson, G.H. (1997) Foreign Direct Investment and Relative Wages: Evidence from Mexico’s Maquiladoras, Journal of International Economics, 42, 371-394.
5. Khan, A.R. (1998) The Impact of Globalisation in South Asia, in A.S. Bhalla (ed.), Globalisation, Growth and Marginalisation, Macmillan India Ltd, New Delhi.
6. Leite, P.G., McKinley, T. , Osorio, R.G. (2006) The Post –Apartheid Evolution of Earnings Inequality in South Africa, 1995-2004, Working Paper No. 32, International Poverty Centre, UNDP,Brazil.
7. Marjit, S. (2003) Economic Reform and Informal wage- A General Equilibrium Analysis, Journal of Development Economics, 72(1), 371-378.
8. Marjit, S., Acharyya, R. (2003) International Trade, Wage Inequality and the Developing Economy-A General Equilibrium Approach, Germany:Springer-Verlag.
9. Marjit, S., Beladi, H. and Chakraborty, A.(2004) Trade and Wage Inequality in Developing Countries, Economic Inquiry, 42(2), 295-303.
10. Marjit, S., Broll, U. and Sengupta, S. (2000) Trade and Wage- Gap in Poor Countries: The Role of the Informal Sector’, in A. Bose et al. (eds.), Macroeconomics, Trade and Institutions: Essays in Honour of M.K.Rakshit, Oxford University Press, Kolkata.
11. Marjit, S. and Kar, S. (2005) Emigration and Wage Inequality, Economic Letters, 88, 141-145.
12. Robbins, D. (1994a) Malaysian Wage Structure and its Causes, Harvard Institute for International Development (HIID).
13. Robbins, D. (1994b) Phillipine Wage and Employment Structure 1978-1983, HIID.
14. Robbins, D. (1995a) Earnings Dispersions in Chile after Trade Liberalisation, HIID.
15. Robbins, D. (1995b) Trade, Trade Liberalisation and Inequality in Latin America and East Asia: Synthesis of Seven Country Studies, HIID.
16. Robbins, D. (1996a) Stolper-Samuelson Lost in the Tropics-Trade liberalization and Wages in Columbia, HIID.
17. Robbins, D. (1996b) HOS Hits Facts: Facts Win: Evidence on Trade and Wages in Developing World, HIID.
18. Shapiro, S. , Stiglitz, J.E. (1984) Equilibrium Unemployment as a Worker Discipline Device, 74(3), 433-444.
19. Tendulkar, S., Sundaram, D.K. and Jain, L R. (1996) Macroeconomic Policies and Poverty in India 1966-67 to 1993-94, Manuscript. ILO, New Delhi.
20. Wood, A. (1997) Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom, World Bank Research Observer, January.
21. Yabuuchi, S. , Chaudhuri, S. (2007) International Migration of Labour and Skilled –Unskilled Wage Inequality in a Develoiping Economy, Economic Modelling, 24(1), 128-137.
TOOLS
PDF Links  PDF Links
Full text via DOI  Full text via DOI
Download Citation  Download Citation
Supplement  Supplement
  E-Mail
Share:      
METRICS
0
Crossref
0
Scopus
1,353
View
11
Download
Product Market Integration and Wage Formation  2000 June;15(2)
Editorial Office
Center for Economic Integration, Sejong Institution, Sejong University, 209, Neungdong-Ro, Gwangjin-Gu,
Seoul, 05006, Korea
TEL : +82-2-3408-3338    FAX : +82-2-3408-3338   E-mail : jei@sejong.ac.kr
Browse Articles |  Current Issue |  For Authors and Reviewers |  About
Copyright© by Center for Economic Integration. All right reserved.