Trade, Migration Costs and Asymmetric Migration Patterns

The World Economy, 42: 2629-2648, 2019

Posted: 1 Jun 2020

See all articles by Rajat Acharyya

Rajat Acharyya

Department of Economics, Jadavpur University

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)

Date Written: May 2, 2020

Abstract

This paper shows that trade and emigration of skilled workers from a poor country is complementary but that between trade and emigration of unskilled workers is a substitute. The asymmetric effect of more openness to trade on the local wages seems to be crucial in driving such results. The asymmetric changes in skilled and unskilled wages generate counterintuitive outcomes regardless of the policy shock that triggers such wage effect. One of the more compelling outcomes is rise in wage inequality as influenced by asymmetric emigration patterns.

Keywords: Trade, emigration, skilled labour, specific factor, remittances, tax

JEL Classification: F22, J64, O15

Suggested Citation

Acharyya, Rajat and Beladi, Hamid and Kar, Saibal, Trade, Migration Costs and Asymmetric Migration Patterns (May 2, 2020). The World Economy, 42: 2629-2648, 2019 , Available at SSRN: https://ssrn.com/abstract=3591062

Rajat Acharyya (Contact Author)

Department of Economics, Jadavpur University ( email )

188, Raja S.C. Mallick Rd, Kolkata 700032
Calcutta, West Bengal 700032
India

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

Centre for Studies in Social Sciences, Calcutta ( email )

R-1, Baishnabghata Patuli Township
Calcutta, 700 094
India
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91-33-2462 6183 (Fax)

HOME PAGE: http://www.cssscal.org

Institute of Labor Economics (IZA) ( email )

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Germany

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