Trade, Migration Costs and Asymmetric Migration Patterns

20 Pages Posted: 7 Jun 2020

See all articles by Rajat Acharyya

Rajat Acharyya

Jadavpur University - Department of Economics

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: September 2019

Abstract

Increase in trade has an asymmetric impact on emigration by skill types for a developing country. Cost of migration is a dynamic function of the type of emigration, and it determines a complementary relation between emigration of skilled workers and expansion of trade. Emigration of unskilled workers is a substitute, however, and these outcomes coexist with endogenously determined emigration rates that depend crucially on wage responses among the own skill types at the source. Additionally, asymmetric emigration patterns increase wage inequality.

Keywords: asymmetric emigration, migration cost, quotas, skill, trade

Suggested Citation

Acharyya, Rajat and Beladi, Hamid and Kar, Saibal, Trade, Migration Costs and Asymmetric Migration Patterns (September 2019). The World Economy, Vol. 42, Issue 9, pp. 2629-2648, 2019, Available at SSRN: https://ssrn.com/abstract=3620974 or http://dx.doi.org/10.1111/twec.12832

Rajat Acharyya (Contact Author)

Jadavpur University - Department of Economics ( email )

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

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

One UTSA Circle
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San Antonio, TX 78249
United States
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210-458-7040 (Fax)

Saibal Kar

Centre for Studies in Social Sciences, Calcutta ( email )

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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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