Skilled Worker Mobility and Wage Inequality

University of Sussex Economics Working Paper No. 71

66 Pages Posted: 17 Dec 2001

See all articles by Edward W.J. Anderson

Edward W.J. Anderson

University of Sussex - Institute of Development Studies

Date Written: January 2001

Abstract

Models by Rosen (1981) and Tang and Wood (2000) predict that reductions in travel and communication costs increase wage inequality in developed countries, by raising the productivity and earnings of a small group of highly-skilled workers. Time-series analysis reveals that both the relative number and the relative incomes of international business travellers rose during the past decade. Cross-section analysis reveals that business travellers earn substantially more than other workers, controlling for observable human capital characteristics. These findings support the predictions of both models, and suggest that the effect has been large.

Keywords: International Mobility, Wage Inequality, Business Travel

JEL Classification: F29, J31, J61

Suggested Citation

Anderson, Edward W.J., Skilled Worker Mobility and Wage Inequality (January 2001). University of Sussex Economics Working Paper No. 71, Available at SSRN: https://ssrn.com/abstract=293884 or http://dx.doi.org/10.2139/ssrn.293884

Edward W.J. Anderson (Contact Author)

University of Sussex - Institute of Development Studies ( email )

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