Low and Highly Skilled Labor Immigration and Wage Inequality

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DOI: 10.4236/ti.2010.12011    5,337 Downloads   10,201 Views  Citations

ABSTRACT

Fears of rising income inequalities loom large in recent discussions of how globalization and in particular migration are affecting economies and societies [1]. This paper addresses the question how labor immigration is related to wage inequality by using a specific-factors trade model. We show that the impact of immigration of low or highly skilled labor on wage inequality depends mainly on the capital intensity of the industry in which labor immigrates.

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B. Wojtyniak, U. Broll and S. Marjit, "Low and Highly Skilled Labor Immigration and Wage Inequality," Technology and Investment, Vol. 1 No. 2, 2010, pp. 97-100. doi: 10.4236/ti.2010.12011.

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