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Emigration, unemployment and welfare – The role of non-traded sector

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  • Marjit, Sugata
  • Kar, Saibal
  • Hazari, Bharat R.

Abstract

In this paper we examine the consequences of skilled versus unskilled labor migration on the welfare of remaining residents (RR) in an economy characterized by unemployment of unskilled labor. It is established that emigration of unskilled workers necessarily raises both the level of employment and the welfare of RR. However, this result need not hold when skilled workers emigrate freely. In obtaining these results we emphasize the critical significance of the non-traded sector in an economy.

Suggested Citation

  • Marjit, Sugata & Kar, Saibal & Hazari, Bharat R., 2013. "Emigration, unemployment and welfare – The role of non-traded sector," The North American Journal of Economics and Finance, Elsevier, vol. 24(C), pages 298-305.
    • Handle: RePEc:eee:ecofin:v:24:y:2013:i:c:p:298-305
    DOI: 10.1016/j.najef.2011.09.001
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    Cited by:

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    8. Pi Jiancai & Ge Yang & Yin Jun, 2017. "The Impacts of Rural Property Rights on Urban Unemployment, Wage Inequality, and Welfare in Developing Countries," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 17(1), pages 1-15, February.
    9. Hamid Beladi & Sugata Marjit & Reza Oladi, 2018. "Does protectionism harm unskilled workers?," Economics and Politics, Wiley Blackwell, vol. 30(3), pages 444-450, November.

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    More about this item

    Keywords

    Emigration; Skill; Non-traded goods; Remittances; Remaining residents;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F3 - International Economics - - International Finance
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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