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Unemployment and International Factor Movement in the Presence of Skilled and Unskilled Labor

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  • Shigemi Yabuuchi

Abstract

Widespread unemployment has been observed in some developing countries. On the other hand, extensive movement of labor across countries has also been observed. Therefore, in order to examine the interaction between the domestic and international labor markets, this paper develops a model that includes unemployment, international factor movement, and the difference between skilled and unskilled labor. The model examines the effect of production subsidies on unemployment and evaluates their effectiveness as a possible policy in order to alleviate the problem of unemployment. Further, this paper investigates the effects of international factor movement on unemployment and welfare.

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  • Shigemi Yabuuchi, 2007. "Unemployment and International Factor Movement in the Presence of Skilled and Unskilled Labor," Review of Development Economics, Wiley Blackwell, vol. 11(3), pages 437-449, August.
    • Handle: RePEc:bla:rdevec:v:11:y:2007:i:3:p:437-449
    DOI: 10.1111/j.1467-9361.2007.00368.x
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    Cited by:

    1. Chaudhuri, Sarbajit, 2008. "Wage inequality in a dual economy and international mobility of factors: Do factor intensities always matter?," Economic Modelling, Elsevier, vol. 25(6), pages 1155-1164, November.
    2. Xiaochun Li & Yuanting Xu, 2016. "Unemployment, Wage Inequality and International Factor Movement in the Presence of Agricultural Dualism," Review of Development Economics, Wiley Blackwell, vol. 20(2), pages 415-425, May.
    3. Dianshuang Wang & Hongyun Huang & Xin Zhao & Fang Fang, 2023. "Green technological progress, agricultural modernization, and wage inequality: Lessons from China," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1673-1698, August.
    4. Shigemi Yabuuchi, 2009. "Emigration and wage inequality in a dual economy," Economics Bulletin, AccessEcon, vol. 29(3), pages 1549-1554.
    5. Hamid Beladi & Sarbajit Chaudhuri & Shigemi Yabuuchi, 2006. "Can international factor mobility lessen wage inequality in a dual economy?," Working Papers 0022, College of Business, University of Texas at San Antonio.
    6. Yunyun Wu & Xiaochun Li, 2021. "International factor mobility and environment in a dual agricultural economy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(1), pages 75-89, February.
    7. repec:ebl:ecbull:v:15:y:2007:i:22:p:1-14 is not listed on IDEAS

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