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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Notes
- 1.
Detailed information can be referred to: http://www.npc.gov.cn/npc/xinwen.rdlt/sd/2010-03/16/content_1564113.htm (Yuanqian Li Yuanqian 2010).
- 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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Li, X., Zhou, Y. (2017). An Economic Analysis of Remittance of Unskilled Migration on Skilled–Unskilled Wage Inequality in Labor Host Region. In: Li, X. (eds) Labor Transfer in Emerging Economies. New Frontiers in Regional Science: Asian Perspectives, vol 12. Springer, Singapore. https://doi.org/10.1007/978-981-10-3569-2_5
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