Emigration, Finite Changes and Wage Inequality

11 Pages Posted: 7 Feb 2013

See all articles by Hamid Beladi

Hamid Beladi

University of Texas at San Antonio - College of Business - Department of Economics

Saibal Kar

Centre for Studies in Social Sciences, Calcutta; Institute of Labor Economics (IZA)

Sugata Marjit

Indian Institute of Foreign Trade; Centre for Studies in Social Sciences, Calcutta; City University of Hong Kong (CityUHK) - Department of Economics & Finance

Date Written: March 2013

Abstract

This article shows that large outmigration of labor leads to finite changes in the structure of production at source. We argue that sectors may vanish as they cannot pay higher wages consequent to emigration. We also inquire whether emigration of one type of labor hurts the other nonā€emigrating type in this setup. Various situations when real incomes of the emigrating and the nonā€emigrating types do not move together are demonstrated. This generalizes some of the existing results in the literature. In particular, emigration can lead to a drastic change in the degree of inequality depending on which of the sectors survive in the postemigration regime.

Suggested Citation

Beladi, Hamid and Kar, Saibal and Marjit, Sugata, Emigration, Finite Changes and Wage Inequality (March 2013). Economics & Politics, Vol. 25, Issue 1, pp. 61-71, 2013, Available at SSRN: https://ssrn.com/abstract=2213139 or http://dx.doi.org/10.1111/ecpo.12001

Hamid Beladi

University of Texas at San Antonio - College of Business - Department of Economics ( email )

One UTSA Circle
P.O. Box 5636
San Antonio, TX 78249
United States
210-458-7038 (Phone)
210-458-7040 (Fax)

Saibal Kar (Contact Author)

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

Indian Institute of Foreign Trade ( email )

New Delhi
QUTUB INSTITUTIONAL AREA
NEW DELHI, 110016
India

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

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1
Abstract Views
550
PlumX Metrics