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

Author

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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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    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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