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Industrial Upgrading: Rural‐Urban Migrant'S Training Costs And Heterogeneous Labor Migration

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  • Xiaochun Li
  • Yang Ge
  • Jing Zhou

Abstract

This article uses H‐T model to analyse economic effects of training costs and heterogeneous labour migration from the prospect of short and long terms. We build a general equilibrium model with three sectors and apply comparatively static methods in discussing economic effects of decreasing training cost for migrants when developing countries are going through industrial upgrading. The main conclusions are: a decrease in training costs reduces rural employment in the short run; there is a threshold in the long term: when rural wage is lower than this value, reducing training cost could increase rural employment, while decrease industrial employment with lower unemployment.

Suggested Citation

  • Xiaochun Li & Yang Ge & Jing Zhou, 2018. "Industrial Upgrading: Rural‐Urban Migrant'S Training Costs And Heterogeneous Labor Migration," Bulletin of Economic Research, Wiley Blackwell, vol. 70(4), pages 483-492, October.
    • Handle: RePEc:bla:buecrs:v:70:y:2018:i:4:p:483-492
    DOI: 10.1111/boer.12144
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    References listed on IDEAS

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    1. Xiaochun Li & Xiaoying Qian, 2011. "Economic Analysis On The Urban–Rural Disparity In Human Capital In China," South African Journal of Economics, Economic Society of South Africa, vol. 79(2), pages 146-160, June.
    2. Chaudhuri, Sarbajit & Banerjee, Dibyendu, 2010. "Foreign capital inflow, skilled-unskilled wage inequality and unemployment of unskilled labour in a fair wage model," Economic Modelling, Elsevier, vol. 27(1), pages 477-486, January.
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    5. Marjit, Sugata & Kar, Saibal, 2005. "Emigration and wage inequality," Economics Letters, Elsevier, vol. 88(1), pages 141-145, July.
    6. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    7. Hamid Beladi & Avik Chakrabarti & Sugata Marjit, 2010. "Skilled‐Unskilled Wage Inequality And Urban Unemployment," Economic Inquiry, Western Economic Association International, vol. 48(4), pages 997-1007, October.
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