TITLE:
Low and Highly Skilled Labor Immigration and Wage Inequality
AUTHORS:
Beate Wojtyniak, Udo Broll, Sugata Marjit
KEYWORDS:
Immigration, Skilled and Unskilled Labor, Wage Inequality
JOURNAL NAME:
Technology and Investment,
Vol.1 No.2,
May
25,
2010
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.