Journal article
Labor Inflow Induced Wage Inequality and Public Infrastructure
Review of Development Economics, Vol.12(4), pp.792-802
2008
Abstract
By making use of a simple general equilibrium model of a small open economy, the author examines the link between labor mobility and the size of wage inequality in the presence of productive public infrastructure. The paper shows that the provision of public infrastructure plays an important part in determining the size of labor inflow induced wage inequality. Specifically, it shows that, irrespective of the relative factor intensities, a small inflow of either skilled or unskilled labor does not affect the size of wage inequality if private industries derive equal benefits from public infrastructure provision. A small inflow of skilled (unskilled) labor increases (decreases) wage inequality if skilled (unskilled) labor intensive industry derives more benefits from public infrastructure.
Details
- Title
- Labor Inflow Induced Wage Inequality and Public Infrastructure
- Authors
- Sajid Anwar (Author) - University of South Australia
- Publication details
- Review of Development Economics, Vol.12(4), pp.792-802
- Publisher
- Wiley-Blackwell Publishing Ltd.
- Date published
- 2008
- DOI
- 10.1111/j.1467-9361.2008.00453.x
- ISSN
- 1363-6669
- Organisation Unit
- School of Business and Creative Industries; Indigenous and Transcultural Research Centre; University of the Sunshine Coast, Queensland; USC Business School - Legacy
- Language
- English
- Record Identifier
- 99449732202621
- Output Type
- Journal article
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