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We provide an analysis of the impact of migration on the skilled- unskilled wage gap. In particular, we show the possibility of a rise in the wage gap following the migration of skilled (unskilled ) labor.
Persistent link: https://www.econbiz.de/10005416803
Using a three-sector general equilibrium model with non-traded goods, we investigate the impact of foreign direct investment on the real wages of skilled and unskilled workers. We show that foreign direct investment increases the real wages of skilled and unskilled workers, but widens the gap...
Persistent link: https://www.econbiz.de/10004991363
We study the impacts of terms trade changes on absolute and the real wages of skilled and unskilled labor and their gaps for an economy specialized in export production. We show an interesting result where wage behavior as well as the skilled-unskilled wage gap depend on elasticity of import...
Persistent link: https://www.econbiz.de/10005036757
By bridging the gap between the strategic model of sanctions and the public choice framework of sanctions, we introduce a new sanctions game. Contrary to an earlier finding, we show that the partial compliance of the target country along with mild sanctions are not only equilibrium, but also...
Persistent link: https://www.econbiz.de/10005754986
Using a three-sector general equilibrium model with non-traded goods, we investigate the impact of foreign direct investment on the real wages of skilled and unskilled workers. We show that foreign direct investment increases the real wages of skilled and unskilled workers, but widens the gap...
Persistent link: https://www.econbiz.de/10005146756
Persistent link: https://www.econbiz.de/10002930059
In this paper we construct a general equilibrium model of trade and illustrate that return to unskilled labor may be negatively correlated with the price of product it produces. Specifically, we show that greater protection for the intermediate good that uses “unskilled” labor can reduce the...
Persistent link: https://www.econbiz.de/10014110967