IDEAS home Printed from https://ideas.repec.org/a/spr/anresc/v34y2000i2p157-172.html
   My bibliography  Save this article

The impact of international capital mobility on the volatility of labor income

Author

Listed:
  • R. Scott Hacker

    (JÃnkÃping International Business School, 551 11 JÃnkÃping, Sweden)

Abstract

If project risk is positively related to project return, then the greater diversification available from international capital mobility also leads to more investment in the riskier projects with high expected returns. This results in internationally immobile laborers facing greater risk in the demand for their services, since these services are provided to riskier projects and the laborers do not receive the diversification benefit that capitalists do. This paper develops a model which shows that when there is more capital mobility between two countries, there is a tendency for both countries to experience an increase in the volatility of labor income under perfect wage flexibility, and this impact is stronger in the country less richly endowed with labor and financial wealth.

Suggested Citation

  • R. Scott Hacker, 2000. "The impact of international capital mobility on the volatility of labor income," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(2), pages 157-172.
    • Handle: RePEc:spr:anresc:v:34:y:2000:i:2:p:157-172
    Note: Received: May 1998/Accepted: March 1999
    as

    Download full text from publisher

    File URL: http://link.springer.de/link/service/journals/00168/papers/0034002/00340157.pdf
    Download Restriction: Access to the full text of the articles in this series is restricted
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:anresc:v:34:y:2000:i:2:p:157-172. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.