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2017 | OriginalPaper | Buchkapitel

5. An Economic Analysis of Remittance of Unskilled Migration on Skilled–Unskilled Wage Inequality in Labor Host Region

verfasst von : Xiaochun Li, Yu Zhou

Erschienen in: Labor Transfer in Emerging Economies

Verlag: Springer Singapore

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Abstract

The present paper establishes a two-sector general equilibrium model and conducts the comparative static approach to investigate the impact exerted by an increase in the remittance rate of the unskilled migrants on the skilled–unskilled wage inequality in the labor host region. We find that the unskilled migrants increase their remittance rate to the labor-outsourcing regions that will decrease the skilled–unskilled wage inequality in the labor host region.

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Fußnoten
2
It is commonly seen in reality that if a technician cannot find a job in the tech-sector, and if he/she would like to find a job in the clean industry, the technician has to receive a wage rate as a common cleaner (the unskilled labor).
 
3
Generally speaking, the skilled labor-intensive sector (sector 1) has a higher per capita capital stock than that of the unskilled labor-intensive sector (sector 2). The per capita capital stock of the skilled labor-intensive sector (sector 1) has a threshold value. In this situation, it is not hard to see that there exists no corner solution of our established model (the skilled labor cannot be fully employed by sector 1).
 
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Metadaten
Titel
An Economic Analysis of Remittance of Unskilled Migration on Skilled–Unskilled Wage Inequality in Labor Host Region
verfasst von
Xiaochun Li
Yu Zhou
Copyright-Jahr
2017
Verlag
Springer Singapore
DOI
https://doi.org/10.1007/978-981-10-3569-2_5