To read the full version of this content please select one of the options below:

Chapter 16 Moving People or Jobs? A New Perspective on Immigration and International Outsourcing

Contemporary and Emerging Issues in Trade Theory and Policy

ISBN: 978-0-4445-3190-2, eISBN: 978-1-84950-541-3

ISSN: 1574-8715

Publication date: 2 June 2008

Abstract

We present a model that allows us to compare the effects that frictions involved in immigration and international outsourcing have on the skilled–unskilled wage inequality. We show that, for any given level of contractual friction in the production of intermediate goods, the wedge between the wages of the skilled and unskilled workers widens as the frictions in immigration wear out. The skilled–unskilled wage gap, for any given level of friction in immigration, is sensitive to variations in contractual frictions in intermediates that affect international outsourcing.

Keywords

Citation

Beladi, H. and Chakrabarti, A. (2008), "Chapter 16 Moving People or Jobs? A New Perspective on Immigration and International Outsourcing", Marjit, S. and Yu, E.S.H. (Ed.) Contemporary and Emerging Issues in Trade Theory and Policy (Frontiers of Economics and Globalization, Vol. 4), Emerald Group Publishing Limited, Bingley, pp. 317-327. https://doi.org/10.1016/S1574-8715(08)04016-5

Publisher

:

Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited