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Emigration, Finite Changes and Wage Inequality

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Abstract

Emigration leads to finite changes in structure of production and sectors vanish because they cannot pay higher wages. Does emigration of one type of labor hurt the other non-emigrating type in this set up? We demonstrate various scenarios when real incomes of the emigrating and the non-emigrating types do not move together. This generalizes some of the existing results in the literature. In particular, emigration can lead to a drastic change in the degree of inequality depending on which of the sectors survive in the post-emigration regime.

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  • Sugata Marjit & Saibal Kar, 2011. "Emigration, Finite Changes and Wage Inequality," Discussion Papers Series 423, School of Economics, University of Queensland, Australia.
    • Handle: RePEc:qld:uq2004:423
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    Cited by:

    1. -Ranajoy Bhattacharyya & Gouranga Das & Sugata Marjit, 2021. "Effect of Contract Farming in a Small Open Less-developed Economy: A General Equilibrium Analysis," Working Papers 2153, Indian Institute of Foreign Trade.
    2. Saibal Kar & Mausumi Kar, 2015. "Liberalized trade policy and inequality: Evidence from Post-Multi-Fibre Arrangement India and some theoretical issues," WIDER Working Paper Series 007, World Institute for Development Economic Research (UNU-WIDER).
    3. Ramesh Chandra Das & Tonmoy Chatterjee, 2021. "Trade liberalization and R&D activity: examining long-run and short-run linkages for individual and panel of leading countries and groups," Economic Change and Restructuring, Springer, vol. 54(4), pages 1091-1118, November.
    4. Sugata Marjit & Biswajit Mandal, 2016. "Finite Change—Implication for Trade Theory, Policy and Development," India Studies in Business and Economics, in: S. Mahendra Dev & P.G. Babu (ed.), Development in India, edition 127, chapter 0, pages 271-282, Springer.
    5. Dutta, Meghna & Kar, Saibal & Marjit, Sugata, 2013. "Product variety, finite changes and wage inequality," Economic Modelling, Elsevier, vol. 35(C), pages 610-613.
    6. Sugata Marjit & Saibal Kar, 2013. "International Capital Flow, Vanishing Industries and Two-sided Wage Inequality," Pacific Economic Review, Wiley Blackwell, vol. 18(5), pages 574-583, December.
    7. Mausumi Kar & Saibal Kar, 2015. "Liberalized trade policy and inequality: Evidence from Post-Multi-Fibre Arrangement India and some theoretical issues," WIDER Working Paper Series wp-2015-007, World Institute for Development Economic Research (UNU-WIDER).
    8. Jiancai Pi & Ping Xu, 2023. "Idea Exchange and Wage Inequality," Annals of Economics and Finance, Society for AEF, vol. 24(1), pages 69-89, May.
    9. Pi, Jiancai & Zhou, Yu & Yin, Jun, 2013. "International factor mobility, monopolistic competition, and wage inequality," Economic Modelling, Elsevier, vol. 33(C), pages 326-332.
    10. Kuo‐Hsing Kuo & Shang‐Fen Wu & Cheng‐Te Lee, 2022. "The impact of environmental policy on wage inequality," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(4), pages 472-485, December.
    11. Pi, Jiancai & Zhang, Pengqing, 2017. "Foreign capital, pollution control, and wage inequality in developing countries," International Review of Economics & Finance, Elsevier, vol. 48(C), pages 280-288.
    12. Rashmi Ahuja & Shrimoyee Ganguly & Rajat Acharyya & Sugata Marjit, 2024. "Labour-Market Reform, Skill-Based Exports and Employment: Some Unconventional Results Under Finite Change in General Equilibrium," CESifo Working Paper Series 11455, CESifo.
    13. Das, Gouranga Gopal & Marjit, Sugata & Kar, Mausumi, 2020. "The Impact of Immigration on Skills, Innovation and Wages: Education Matters more than where People Come from," Journal of Policy Modeling, Elsevier, vol. 42(3), pages 557-582.
    14. Sugata Marjit & Saibal Kar, 2019. "International Capital Flows, Land Conversion and Wage Inequality in Poor Countries," Open Economies Review, Springer, vol. 30(5), pages 933-945, November.

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