Trade, migration costs and asymmetric migration patterns

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 worker...

Full description

Saved in:
Bibliographic Details
Published inWorld economy Vol. 42; no. 9; pp. 2629 - 2648
Main Authors Acharyya, Rajat, Beladi, Hamid, Kar, Saibal
Format Journal Article
LanguageEnglish
Published Oxford Blackwell Publishing Ltd 01.09.2019
Subjects
Online AccessGet full text

Cover

Loading…
More Information
Summary: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.
ISSN:0378-5920
1467-9701
DOI:10.1111/twec.12832